Kotak Special Situations Fund (KSSF), part of the alternative investment arm of Kotak Group announced an investment of Rs 1,000 crore in the data center business of Sify Technologies.
KSSF, will invest Rs 1,000 crore (around $135 million) in Sify Infinit Spaces Limited (SISL), a wholly-owned subsidiary of Sify, Kotak said in a statement.
A statement further said, the investment in Sify Infinit Spaces would help the company to invest up to Rs 4,000 crore in building data centers in Mumbai, Noida, Chennai, Bangalore and Hyderabad, as well as investing in renewable energy assets for the company’s assets.
Raju Vegesna, chairman and managing director, Sify, said, “India is set for significant economic growth and is becoming the first choice destination for both global businesses and investors. India is witnessing the rise of Information technology-driven entrepreneurship and business growth.”
He said, “The current capacity of the Data Centre industry in India is expanding at an unprecedented pace, powered by wider cloud adoption, 5G rollout and accelerated digital transformation programmes of enterprises. We are delighted to partner with KSSF as a part of this journey to build world-class Data Centre facilities for our customers to benefit from the large-scale digital transformation of India.”
Eshwar Karra, CEO-Kotak Special Situations Fund, Kotak Investment Advisors Limited (KIAL), said, “Our investment in SIS is in line with our strategy of providing capital to unique India opportunities that require flexible and customised capital solutions, which enables us to grow with our partners and participate in their success while providing value-added support and opportunistic capital in size and scale.”