CloudExtel Raises ₹200 Crore for Data Centre Interconnect Network Expansion

CloudExtel, a Network-as-a-Service (NaaS) provider based in Mumbai, has secured ₹200 crore in debt financing from a major private bank to expand its small-cell and fibre-optic networks, according to media reports. 

Current shareholders have also contributed through a proportional follow-on equity investment, showing their support for the company's next growth phase.

The investment will be utilised to develop CloudExtel's upcoming Data Centre Interconnect (DCI) network, which aims to provide high-capacity, low-latency, and redundant connections between data centres, essential for AI operations, cloud computing, and digital content distribution.

Kunal Bajaj, co-founder and CEO of CloudExtel, stated that these funds will enable the company to scale quickly, enhance its infrastructure, and continue making an impact through collaboration and technology-driven efficiency. 

He emphasised that the new Data Centre Interconnect network in Mumbai, along with future expansions in other cities, will bolster their competitive edge and ability to deliver integrated solutions for India's digital landscape.

“India’s digital landscape is poised for substantial growth with emerging technologies set to revolutionise the ecosystem. This partnership with NIIF IFL and ABFL marks a significant step in our journey as the debt capital infusion will now be complementary to the investment by Macquarie Capital and Advencap. The credit rating also substantiates our emphasis on world-class governance and financial stability,” he added, as reported by the Economic Times. 

With this capital injection, the company aims to strengthen its presence in Fibre and Small Cells deployment.

They also noted that only 33% of telecom towers in India are fiberised, compared to over 70% in global markets, with demand expected to rise as data centres and Fibre-to-the-Home (FTTH) services grow at CAGRs of 40% and 27%, respectively, in the top 10 cities.

This debt financing comes on the heels of CloudExtel's equity investments from Macquarie Capital and Advencap in the 2024 fiscal year.