NxtGen selects Avendus for $300 million capital raise
NxtGen Datacentre & Cloud Technologies has hired Avendus Capital as its investment banker to raise $300 million, seeking a valuation of about $900 million. This is the largest funding round for the company so far and also fits with its aggressive plans to expand in India’s fast-growing data centre market. The money will go mostly towards strengthening its infrastructure and cloud service offerings nationwide.
As part of its expansion plans, NxtGen is to install 12,000 GPUs by May 2025 to meet the increasing demand for artificial intelligence (AI) computing. With over 1,000 GPUs currently operational, including high-end Nvidia L40S and H100 variants, the company aims to become a major AI infrastructure player in India. The firm can take several billion dollars in the next three years, said founder and CEO A S Rajgopal and may go for a public listing, depending on the market environment and investor appetite.
India’s data center market is growing at a fast pace, fueled by exploding demand for AI capabilities and cloud computing. The industry is poised to grow from $4.35 billion in 2021 to $10.09 billion by 2027 with a CAGR of 15.07%. This growth creates a huge opportunity for companies such as NxtGen to expand their business and address the changing demands of tech startups and enterprises.
The association with Avendus is likely to link NxtGen with leading investors and facilitate its next stage of growth in the high-growth digital infrastructure space.
