NxtGen Datacentre & Cloud Technologies, the IT infrastructure services company, headquartered in Bengaluru, has raised $13.5 million from International Finance Corporation (IFC), a member of the World Bank Group; international investment firm, Axon Partners Group; and Intel Corporation’s global investment organization, Intel Capital; as part of series B funding for expansion activity.
The financing will be used to complete a high density data centre facility in Bangalore and increase further investments into cloud infrastructure. NxtGen currently has two data centres in India – in Mumbai and Bengaluru – and has offices in four major metros Bengaluru, Mumbai, Chennai, and Delhi. It has 105 employees and 200+ channel partners taking its services to market.
“This second round of funding, will enable us to further strengthen our growth plans in India and initiate our international strategy. We are thankful to Intel for reinforcing their commitment in us and participating in the second round. Both IFC and Axon, bring in a wealth of global market experience to guide us in this rapid growth phase. We look forward to delivering increased value proposition to our customers globally,” said A S Rajgopal, CEO, NxtGen.
Congratulating NxtGen on this new partnership, Atul Mehta, IFC Director for Telecom, Media, and Technology, Venture Capitals and Funds, said, “Affordable and effective IT infrastructure colocation and cloud computing services are increasingly important for digital inclusion and economic development. Built to top industry standards, NxtGen’s data centers will support India’s growing need for data consumption, incur capital savings for businesses, and boost direct and indirect job creation.”
The Telecom, Media & Technology (TMT) group at IFC focuses its investments on mobile, broadband, and infrastructure sharing. Independent datacenters fit well into IFC’s strategy as they are an integral critical component of the telecom infrastructure, and allow for the evolution of an IT ecosystem in local economies. IFC’s TMT group has invested in five other datacenter companies in emerging markets – GDS/EDC-China, Teraco-South Africa, iXcellerate-Russia, DeNovo-Ukraine and Zenium-Turkey.
Francisco Velázquez de Cuéllar, President of Axon Partners Group said, “NxtGen has made great achievements in just three years and the data centre market offers huge opportunities for investors right now. At Axon, we look primarily at the team behind the business and in NxtGen we have found an experienced team with the professionalism and skill to take the company to the next stage of growth and lead its international expansion.”
Axon Partners Group specialises in growth capital investments in the digital technology market and will take the position of international corporate partner of NxtGen, using its international presence and expertise within emerging markets to support the company in its international growth plans, specifically into Latin America and the Middle East. NxtGen is Axon’s second investment in the cloud technology sector, having invested in O4IT, a leading cloud technology services company in Latin America, in 2014. Axon is investing with its India Opportunities Fund, which has also invested in companies like iYogi and Captronic Systemsaptronic Systems, and recently performed a successful exit of JustEat India.