AVCJ

IFC proposes $20m investment in India's NxtGen Technology

  • Holden Mann
  • LinkedIn  
  • Google plus  
  • Save this article  

The International Finance Corporation (IFC) is considering an investment of up to $20 million in Indian IT data center construction and management firm NxtGen Technology, in a deal that will involve both equity and debt.

According to a statement, NxtGen will use the capital to expand data center operations in Mumbai and Bangalore and in an ongoing project to construct a new data center in Bangalore. It is expected to cost $84 million in all.

NxtGen's project is intended to address India's current shortage of data center services. The planned center will be earthquake resistant and provide a stable power supply and environmental conditions to companies seeking to outsource IT functions. Initially NxtGen will offer 1,000 server racks, with the possibility of expansion to 2,000 racks in the future.

NxtGen was founded in 2013. The company offers data center and enterprise cloud services from its own sites and also constructs data centers for clients. Current backers of NxtGen include Intel Capital, which committed $8.8 million in 2013.

The proposed deal would expand IFC's stake in India's web infrastructure. The group's other interests in this include leading a $45 million round for broadband service provider Tikona Digital Networks in 2014.

  • LinkedIn  
  • Google plus  
  • Save this article  

More on South Asia

Latest News

world-hands-globe-climate-esg
Asian GPs slow implementation of ESG policies - survey

Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...

  • GPs