Technology Money Startups

IFC may invest up to $20M in Intel Capital-backed data centre firm NxtGen


International Finance Corporation (IFC), the private sector lending arm of the World Bank, is planning an equity investment and debt funding of up to $20 million (Rs 125 crore) in NxtGen Technology Pte Ltd, the Singapore-based parent of Indian IT infrastructure services provider NxtGen Datacenter & Cloud Technologies Pvt Ltd, it said.

This is part of a larger project which would absorb total investment of $84 million.

The Indian arm of NxtGen will use the money to expand existing data centre operations and services in Bangalore and Mumbai. The firm will also use it in the under-construction facility in Bidadi, Bangalore. This new unit currently has a 1,000-rack data centre with potential to double the capacity.

"Built to support high power density requirements, these data centre facilities will narrow the supply gap to host information and communications technology (ICT) infrastructure for large and small enterprises and organisations, as well as provide off-site disaster recovery and backup of client data and systems," IFC said in the disclosure.

Founded in August 2013 by AS Rajgopal, the Bangalore-based startup delivers central IT platform-as-a-service to enterprises, providing full spectrum data centre and enterprise cloud services from its own high density data centre facilities and deploying centrally managed on-premise data centres at customer locations.

The main shareholders of the company include Rajgopal and other members of the management through NxtGen Partners, an Indian partnership firm, the employees and Intel Capital.

Intel Capital, the corporate VC arm of the global chip maker, had invested $8.8 million (Rs 53.9 crore) in the company in August 2013.

The company is planning to continue to explore more data centre opportunities in other emerging markets in the future as well, it added.

(Edited by Joby Puthuparampil Johnson)