CanBank Venture invests Rs 25 cr in ESDS Software Solution

The first phase of the investment is for a 2 lakh sq ft data centre in Navi Mumbai to be launched in April 2015

CanBank Venture, the wholly owned subsidiary of Canara Bank, has invested Rs 25 crore in Nashik-based ESDS Software Solution which is planning to set up three data centres in the next 24 months.

CanBank Venture has invested Rs 25 crore in the first phase for a 2 lakh sq ft data centre in Navi Mumbai to be launched in April 2015, a company statement said here today.

The investment has been made through the CanBank's Rs 435 crore Emerging India Growth Fund.

"A one lakh sq ft data centre in Bengaluru is under planning stage and a 50,000 sq ft data centre in Nashik will be set up in addition to the existing one," ESDS Software Chief Executive Officer and Managing Director Piyush Somani said.

The present investment from CanBank Ventures would be primarily used towards setting up the Mumbai data centre and business development activities.

For the data centre at Bengaluru and expansion of Mumbai data centre, the company would raise funds from a combination of debt, internal accruals and further rounds of private equity investments, Somani said.

Earlier, the company had raised Rs 10 crore debt from German international development bank KFW and Small Industries Development Bank of India (SIDBI).

ESDS expects to close FY15 with a revenue of Rs 45 crore in India. The company, which at present has a 50,000 sq ft facility in Nashik, provides data centre and cloud hosting services to customers like Pizza Hut, Kafila, Essel Propack and Maharashtra State Election Commission, among others.