MUMBAI: Digital Entertainment Networks, one of the leading multi-system operators jointly floated by IBN18 joint MD Sameer Manchanda and Network18 founder-promoter Raghav Bahl, is in talks with private equity investors to raise funds for expanding its digital cable TV business.

The MSO has already got an investment of $40 million from Infrastructure Leasing & Financial Services Limited (IL&FS), a source familiar with the development tells Indiantelevision.com.

DEN has a major presence in Delhi and Uttar Pradesh, the two lucrative carriage revenue markets for cable networks from broadcasters, and is pushing for digital set-top boxes (STBs) for which is requires fresh infusion of capital.

"DEN has initiated serious talks with private equity investors. It has also kept open its other option of tapping the capital market with an initial public offering," the source says.