The ICLoods India mail service is facing a shutdown after two-and-a-half years, its chief executive officer Vijay Goyal said in a letter on Tuesday.
The company’s India division is being shut down due to a lack of funding, Goyal added.
The Indian telecom company ICL, founded in 2012, has a turnover of about Rs 2,000 crore ($24 million).
In 2015, ICL had been a valued Indian telecom service provider (ISP) company with revenues of around Rs 500 crore ($71 million).
The company has also invested heavily in new infrastructure.
Goyal had said in October 2016 that it would close its India operations by the end of 2019, citing “continuing difficulties in the telecom sector”.
Goyal also announced on Monday that the company was planning to launch a new global broadband service through a joint venture with China’s Huawei, the country’s second-largest internet provider.
“This is the most significant step in our strategy to further transform our business and grow the company’s revenues in India,” Goyal wrote in the letter to the company shareholders.
The announcement came after the Indian government approved the creation of a joint fund between ICL and Huawei to help ICL build infrastructure and expand its footprint in India.
Goy said that the Indian Telecom Regulatory Authority (ITRA) had granted the request to the joint venture company, which will also invest in infrastructure in India, and that ICL has been in talks with the government for nearly a year.
“We will not delay in investing in India’s telecom infrastructure, which has already proved itself to be an asset,” he added.