$1bn alternative asset fund invests into India’s Sify Technologies digital estate

Data centres are currently being developed in Mumbai, Noida, Chennai, Bangalore and Hyderabad, as well as renewable energy equipment.

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November 02, 2021 | 5:00 AM GMT

$1bn alternative asset fund invests into India’s Sify Technologies digital estate

Srini Sriniwasan, Managing Director, Kotak Investment Advisors Limited. Source: Kotak

The Tech Capital

Alternative asset fund Kotak Special Situations Fund (KSSF) said it will invest in India’s ICT provider Sify Technologies to expand the tech business’ data centre footprint.

KSSF, managed by Kotak Investment Advisors Limited (KIAL) and whose LPs include Sovereign Wealth Funds, will invest up to INR 1,000 crore (~US$133.25 million) in Sify Infinit Spaces Limited (SISL), a wholly-owned subsidiary of Sify.

SISL is a data centre services player in India, serving Indian and global enterprise customers and hyperscalers from ten operational data centres across the country.

Under the transaction, the KSSF investment will be in the form of Compulsorily Convertible Debentures, which will convert into equity based on the operational performance of SIS over a specified reference period.

The funds would be used to invest in SIS’ current plan under execution of developing new data centres in Mumbai, Noida, Chennai, Bangalore and Hyderabad and for investment in renewable energy requirements for its operational and new data centres for up to INR 4,000 crore (~$533 million).

MP Vijay Kumar, Chief Financial Officer, Sify said: “The hyperscalers and enterprise customers have shown high confidence in colocating to our Data Centres over time and these engagements continue to scale. The KSSF partnership will give us access to long-term capital, beyond the present investment.”

Srini Sriniwasan, Managing Director, Kotak Investment Advisors Limited added: “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.”


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