Mumbai's Network-as-a-Service provider CloudExtel raises Rs 200 crore in external debt

Mumbai-based Network-as-a-Service (NaaS) provider CloudExtel has raised Rs 200 crore in external debt. The company received Rs 150 crore from NIIF Infrastructure Finance Limited (NIIF IFL) and an additional Rs 50 crore from Aditya Birla Finance Limited (ABFL). 

The funding is aimed at enhancing CloudExtel's market presence in fibre and small-cell deployment across India.

CEO highlights the importance of funding

Kunal Bajaj, CEO and Co-founder of CloudExtel highlighted the importance of this partnership with NIIF IFL and ABFL.

"India’s digital landscape is poised for substantial growth with emerging technologies set to revolutionize the ecosystem. This partnership marks a significant step in our journey as the debt capital infusion will now be complementary to the investment by Macquarie Capital and Advencap," Bajaj said. 

Bajaj emphasized that the combined capital would strengthen their position to effectively respond to market opportunities and expand their deployment in network infrastructure.

Recent stake acquisition in CloudExtel

CloudExtel has recently undergone notable corporate changes. In May 2023, the company sold a 51% controlling stake to Macquarie Capital for $100 million, which involved buying out Bombay Gas Company’s shares.

Later, in October 2023, Advencap, a digital infrastructure ventures investor, acquired part of Macquarie Capital’s shares in the company.

What does CloudExtel do?

CloudExtel offers a wide range of infrastructure services, including small-cell hosting, Fiber To The Home (FTTH), intra-city fibre, and virtualized networks. These services cater to telecom operators, internet service providers, data centres, and enterprises, among others.

The company claims to have a footprint across 475 cities and towns in India. It claims that it operates 6,000 small cell sites and has deployed over 7,000 kilometers of fiber. 

CloudExtel plans to expand its fibre and wireless infrastructure fivefold in the next five years, targeting advancements in 4G, 5G, and data centres.