Mumbai: NXTGEN DATCENTRE and Cloud Technologies have appointed investment bank Avendus to raise $ 300 million at $ $ 900 million evaluation, two people familiar with the case told Mint.
“The company has been in the market for some time, but recently appointed Avendus to raise money,” said one of the people, saying that NXTGEN has talked to several investors to raise capital. The other person said, “If the round is planned, it will be the biggest till date.”
NXTGen did not respond to Mint’s request for a comment, while Avendus refused to comment.
NXTGEN DATCETER and Cloud Technologies are a technology service company that provides data centers and cloud-based solutions, which according to its official website, focus on enabling businesses with scalable, safe and cost-skilled infrastructure in public, private and industry clouds.
According to Market Intelligence provider Traxon, the company last raised $ 13.5 million from a group of investors including International Finance Corporation (IFC), Axon Partners Group and Intel Capital as part of its series B funding round in 2015.
PE firms impose large conditions at data centers
Many large private equity firms, including Blackstone, Erestone and Brookfield, have placed a big bet on the data center business either through a joint venture or direct investment.
Blackstone launched a data center platform called Lumina Claudinfra and planned to invest more than $ 300 million at the Navi Mumbai Hypersscale Data Center, while Reliance Industries entered the fast growing section in partnership with Brookfield of Canada last year.
In 2021, the Everestone Group formed a joint venture partnership with a global developer, owner-operator and service provider, Yondr Group to deploy $ 1 billion to develop data centers in India.
NXTGEN services are particularly important at a time when technical giants and geophysical groups are taking advantage of data from emerging economies, exotic clouds raise concerns about dependence on infrastructure. According to the company, it has given rise to strict privacy policies that emphasize data sovereignty, control and long -term governance.
India’s data center market
According to a CBRE report published in May 2024, India’s data center market is expected to increase from $ 4.35 billion in 2027 to $ 4.35 billion in 20210, a mixed annual growth rate of 15.07%(CAGR) of 15.07%.
More than 90% of the new data is expected to be concentrated in major cities like Mumbai, Chennai, Delhi-NCR, Bangalore and Hyderabad, CBRE said, prominent players are also searching for unused markets like Kochi, Jaipur, Ahmedabad, Lucknow, Patana and Viskhapatta.
Last month, NXTGEN planned to deploy 12,000 GPUs by May as a demand for AI computing continued to grow in India. It currently has more than 1,000 GPUs, including Nvidia L40S and H100 models.
According to the report, the company’s founder and Chief Executive Officer estimated as Rajagopal that NXTGen would require a few billion dollars in the next three years and the investor could also evaluate a public list based on interest. It has more than 400 employees and plans to appoint more AI engineers to meet the demand.
In FY23, the company reported consolidated revenue from the operation of $ 23 million to $ 24.9 million a year ago. According to a Tracxn report, it posted a loss of $ 10.6 million in FY22 as compared to $ 5.4 million.
