Kotak Data Center Fund (KDCF), under the management of Kotak Alternate Asset Managers Limited (KotakAlt), has made a significant announcement today. They have invested Rs 600 crore in Sify Infinit Spaces Limited (SISL), a wholly-owned subsidiary of Sify Technologies Limited (‘Sify’).
With this latest investment, the total equity commitment from KotakAlt-managed funds to SISL stands at Rs 1,600 crore, out of which Rs 1,000 crore has been previously invested, including the current infusion of Rs 600 crore. This investment by KDCF takes the form of compulsory convertible Debentures, which will be converted into equity based on the operational performance of SISL during a specified reference period. The funds allocated through this investment will be utilized to expand SISL’s Data Center capacity throughout India and to further investments in renewable energy projects.
MP Vijay Kumar, Executive Director and Group CFO, Sify said, “Kotak Alternate Asset Managers’ continuing investment in Sify Data Centers 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 Center footprint and realize 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.”
Srini Sriniwasan, Managing Director, Kotak Alternate Asset Managers Limited said, “We are delighted to partner with Sify to build out the Data Center 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 Centers 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 Center sector is a long-term secular opportunity.”
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