Kotak Data Center Fund, managed by Kotak Alternate Asset Managers (KotakAlt), has invested ₹600 crore in Sify Infinit Spaces, a wholly-owned subsidiary of Sify Technologies.
With this transaction, KotakAlt-managed funds’ total equity commitment to Sify Infinite has touched ₹1,600 crore, of which ₹1,000 crore has been invested to date.
The investment is in the form of compulsorily convertible debentures, which will be converted into equity based on the operational performance of Sify Infinite over a specified period. The funds would be used to expand Sify’s data center capacity across India and invest in renewable energy.
Sify’s Executive Director and Group CFO MP Vijay Kumar 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 realise 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.”
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Srini Sriniwasan, Managing Director, Kotak Alternate Asset Managers, said, “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.”
Kotak Alternate Asset Managers, a part of Kotak Mahindra Group, focuses on alternate assets management and investment advisory businesses.
The company was set up in early 2005 and has raised, managed and advised over $18 billion across different asset classes including private equity, real estate, infrastructure, special situations, data centers and private credit.