Kotak Data Centre Fund, managed by Kotak Alternate Asset Managers Limited (KotakAlt), has announced an investment of Rs 6 billion in Sify Infinit Spaces Limited (SISL), a wholly-owned subsidiary of Sify Technologies Limited. With this transaction, KotakAlt managed funds’ total equity commitment to SISL is Rs 16 billion, of which Rs 10 billion has been invested to date.
The investment is in the form of compulsory convertible debentures, which will be converted into equity based on the operational performance of SISL over a specified reference period. The funds would be used to expand SISL’s data centre capacity across India and invest in renewable energy.
Commenting on the investment, MP Vijay Kumar, executive director and group chief financial officer, Sify, said, “Kotak Alternate Asset Managers’ continuing investment in Sify data centres is an endorsement of our roadmap for Sify’s Data Center business and the larger potential within the Indian geography. This partnership gives us the needful equity to scale up our data centrefootprint and realise our opportunities faster. Our intent is to build capacity in sync with customer demand, in the most modular design and by deploying the latest and most cost-effective technologies.”
Meanwhile, Srini Sriniwasan, managing director, Kotak Alternate Asset Managers Limited, said, “We are delighted to partner with Sify to build out the data centre capacity in India and contribute to the goal of a digitally savvy India, based on the strength of Sify’s entrepreneurial capabilities and experienced management team. Data centres are at the core of the country’s Digital India ambition, and we believe that with vibrant entrepreneurship in the digital space, rich media consumption by an exploding well- connected population and increasing requirements for local storage of data, India’s data centre sector is a long-term secular opportunity.”