Arjun-backed Indigo Networks enters water market in multi-utility business expansion

• First Ofwat appointment marks the next stage in Indigo’s expansion from gas into electricity and water, becoming a multi-utility network owner and operator

• Arjun has supported Indigo’s transformation into a multi-utility network owner and operator since investing in 2019

Arjun Infrastructure Partners announces that its portfolio company Indigo Networks has secured its first Ofwat licence to own and operate water and wastewater utility connections to new homes and businesses. The appointment marks another significant step in Indigo’s development as a last-mile multi-utility network owner and operator, adding water to its well-established gas and growing electricity last-mile utility networks.

The New Appointments and Variations (NAV) water licence recognises Indigo’s investment in its team and capabilities to own and operate water networks alongside gas and electric networks.

Founded in 1992, Indigo Networks is one of the UK’s largest and longest-established independent utility network owners operating and maintaining electricity, gas and water infrastructure.  

When Arjun acquired Indigo in 2019, the business operated as a regulated last-mile gas distribution business only. Arjun’s investment strategy was to broaden its offering and expand into becoming a multi-utility owner and operator.

Indigo subsequently expanded into electricity, securing its Ofgem licence in 2020. It now operates and maintains utility connections to more than 218,000 homes and businesses across the UK. Since 2019, Indigo’s owned utility network assets have increased by 25%, with a strong focus on electrical network connections to new build residential homes, industrial and commercial properties and EV charging networks.

Supporting the expanded growth, Arjun has overseen changes to Indigo’s executive leadership team since 2023. Over the past twelve months, Indigo has made several growth-oriented appointments, including senior appointments across water networks, legal, asset management and business development. Since 2019, Indigo’s team has grown substantially to almost 60 employees today.

The water licence establishes Indigo’s third utility offering and creates a platform for further growth, advancing Arjun’s strategy to become a multi-utility asset adopter and operator. By offering water and wastewater services alongside gas and electricity, Indigo can provide developers with a more integrated approach to the essential infrastructure required for new housing and commercial developments.

Adam Delaney, Managing Director at Arjun Infrastructure Partners, said: 

“Arjun acquired Indigo with a clear ambition: to transform a gas focussed last-mile utility network business into a leading multi-utility platform, one that looks to support the move towards a future of low carbon utility solutions across the UK. Its expansion into electricity, rapid growth across its networks and team, and first water appointment show that strategy is delivering. Terry and the team have built a leading platform for further growth while staying focused on the customers and communities these essential networks serve.”

Terry Dugdale, Chief Executive Officer of Indigo Networks, said: 

“Our first water appointment is an important milestone for Indigo and for the customers who want a dependable partner across multiple utilities. We have invested in the people and expertise required to support water and wastewater networks over the long term. We are now working on additional NAV projects as we develop our water offering alongside our established gas and electricity businesses.”

About Arjun Infrastructure Partners

Arjun Infrastructure Partners is an independent asset manager focused on European mid-market infrastructure investments. Founded in 2015, Arjun manages approximately €8.2 billion of capital on behalf of prominent institutional investors across the digital, renewables, transport and utilities sectors.

About Indigo Networks

Founded in 1992, Indigo Networks is one of the UK’s largest and longest-established independent utility network owners. The business invests in, adopts, operates and maintains electricity, gas and water infrastructure, connecting more than 218,000 homes and businesses across the UK.

Through its customer-first approach and growing multi-utility expertise, Indigo Networks is making utility adoption simpler, smarter and more connected.