Intel Capital commits $8.8m to Indian big data firm NxtGen
Intel Capital, global chipmaker Intel’s corporate VC arm, has invested $8.8 million in NxtGen Datacenter & Cloud Technologies, a Bangalore-based IT infrastructure services provider. The capital will primarily be used to complete NxtGen’s large high-density data center, which is scheduled to be operational by March of next year.
NxtGen offers datacenter and enterprise cloud services from its own high-density data center facilities as well as deploying on premises data centers for customers. The company's major markets are currently India and the Middle East, but it plans to enter Southeast Asia.
"Intel Capital's latest investment demonstrates the breadth of innovation in India, with companies here at the forefront of cloud computing and data infrastructure services," said Arvind Sodhani, president of Intel Capital and executive vice president at Intel, in a statement. He added that NxtGen should also benefit from access to Intel Capital's global network, technology expertise and brand capital.
The deal, led by Mumbai-based Investment Director Pradeep Tagare, came from the $250 million Intel Capital India Technology Fund, established in 2005.
Intel Capital has been investing in India since 1998, deploying in excess of $330 million in more than 90 technology companies across 10 cities. In June, the VC unit announced that it would invest in Snapdeal.com and fellow Indian online retailer Healthkart.com as part of a $16 million commitment spread across three Asian e-commerce companies.
Last year Intel Capital invested $352 million in 150 deals, with approximately 57% of funds committed outside North America.
There have been a number of venture capital investments in the cloud application and big data space recently, and many of the target companies have operations in India. This is due to the synergies that can be found between the existing business process out-sourcing (BPO) and knowledge process out-sourcing (KPO) sectors and the fast-growing data service industry.
Recent deals include a Series B round worth $4 million for cloud-storage solutions provider Cloudbyte, led by Fidelity Growth Partners India; TA Associates' acquisition of a minority stake in data analytics firm Fractal Analytics for $25 million; and a $7 million Series A round for big data firm Qubole, which included Lightspeed Ventures and Charles River Ventures.
The standout transaction in the space remains the General Atlantic and Sequoia Capital-led Series D round - worth $108 million - for Mu Sigma in 2012.
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