NxtGen Datacentre & Cloud Technologies, Bengaluru headquartered IT infrastructure services company, has raised upto $20 million from International Finance Corporation (IFC) as part of series B funding for expansion activity.
The equity investment from IFC, an affiliate of World Bank, will be used to fund its ongoing $84 million data centre project in Bengaluru.
Talking to FE, AS Rajgopal, MD, NxtGen, said that besides IFC, its earlier investor Intel Capital will also extend additional equity infusion.
Intel Capital invested $8.8 million in NxtGen in 2013. Without disclosing the valuation of the equity funding, Rajgopal said they are also in active talks with another potential investor and the investment could materialise soon.
NxtGen, which primarily provides IT infrastructure and cloud services, has two data centres in India – Mumbai and Bengaluru. The third centre, also in Bengaluru, is being funded through a combination of debt and equity with the company also holding talks with a few banks to raise the required funds. The latest data centre is expected to be operational by June this year.
Rajgopal said it always looks at potential investors who, along with financial investment, also bring in strategic value. The company, which has largely domestic clients, expects a significant uptick from the financial services and e-commerce sectors. NxtGen is also looking at expanding its activity overseas in locations such as Abu Dhabi and Sri Lanka.