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V. Rishi Kumar

Hyderabad, Aug. 14 Ctrl S Data Centres, the Hyderabad-based data centre and IT infrastructure management services provider, is set to raise Rs 700 crore to fund its expansion plans. These plans include the ramp-up of the existing Hyderabad data centre and new ones in Mumbai, Delhi, Chennai and Bangalore.

“Of the Rs 700 crore required to meet the expansion project of setting up four new centres, Rs 250 crore will be equity and the rest debt component,” according to the Chairman and Managing Director of Ctrl S, Mr P.S. Reddy.

Mr Reddy today told Business Line that the funding requirement would be closed within four to six weeks from now. Of the Rs 250 crore equity component, private equity investment will be about $40 million (about Rs 170 crore).

“The company is in parleys with private equity companies and expects to announce closure of the deal shortly,” he said.

The balance of the equity component will be pumped by the promoters and the debt is being negotiated with a consortium of banks, he said.

Detailing the company business, Mr Reddy said that the company hosts data and manages IT infrastructure for about 23 enterprises, which includes one of the largest global telecom operator with revenues of over $200 billion, Kirby Systems, MetaMind, Great Eastern Shipping, Seven Hills Business Solutions, a service provider for Nokia, Exensys among others.

“We believe that the way forward is more and more companies would prefer a specialised vendor to handle their information that will free up their resources to focus on core business. Therefore, we are setting up four more centres in the country,” Mr Reddy said.

The company had earlier signed up with IBM for marketing of their data centres to customers, channels and franchisees across the country.

Part of the Rs 500 crore Pioneer group, Ctrl S was established with investments from IDBI and Och-Ziff, a New York-based hedge fund.

More Stories on : Venture Capital | IT-enabled Services

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