IFC plans to invest, extend loan to Intel Capital-backed NxtGen

Investment to support the company's expansion plans

International Finance Corporation (IFC) is considering acquiring an equity stake in NxtGen Technology. It might also offer a loan to that company. The combined amount is likely to add up to $20 million.

The Singapore-based NxtGen Technology invests in data centres in emerging markets. IFC’s proposed investment will support the company’s $84-million expansion of operations and services in Bengaluru and Mumbai, as well as the construction and operation of a new data centre in Bengaluru.

The primary shareholders of NxtGen, founded by A S Rajgopal in 2013, include US-based Intel Capital.

NxtGen Datacenter & Cloud Technologies, NxtGen’s wholly-owned subsidiary, has data centre operations in Bengaluru and Mumbai. NxtGenDC’s data centre solutions include enterprise cloud services, a high-density data centre for co-location and dedicated hosting and comprehensive technical services.

The company plans to expand its operations and services in Bengaluru and Mumbai and develop and operate a 1,000-rack data centre in Bidadi, Bengaluru; this could be expanded up to 2,000 racks. The data centres aim to narrow the supply gap to host information and communications technology infrastructure and provide off-site disaster recovery & back-up of client data and systems.

The company also plans to explore opportunities in other emerging markets. It said a long-term relationship with IFC would help in expand to other regions and aid the company’s efforts to attract additional financing from other sources.