Network-as-a-service provider CloudExtel plans to deploy 250 km of underground fibre in Bengaluru over the next two years. The network will serve data centres and hyperscalers while also boosting telecom operators’ core connectivity, according to Kunal Bajaj, CEO and co-founder of CloudExtel.

The deployment in Bengaluru will be part of the company’s larger rollout of 1000 km of underground fibre across Mumbai, Pune, and Bengaluru.

Founded in 2010, CloudExtel provides last mile fibre, small cell and shared RAN infrastructure to telecom majors like Airtel and Vodafone, as well as to internet service providers. According to Bajaj, Cloudextel provides the underlying dark fibre – “akin to the plumbing” – that will then be lit and operated by major telcos. The company operates 12000 km of fibre in 50 locations.

“With significant investments into the data centre space, especially from hyperscalers, there is a growing need for higher capacity with lower latency.” Bajaj said. “While there is a strong fibre network in these cities, given the type of capacity that is going to be needed over the next five to ten years, there is a growing demand for building out new networks with higher standards of quality and resilience,” he said, speaking to BusinessLine.

The company plans to fund the expansion through equity rounds from existing investors, including Macquarie Capital, the corporate advisory, capital markets, and principal investment arm of Macquarie Group, which acquired a majority stake in the company for $100 million. Cloudextel also raised 200 crore in debt from NIF Infrastructure Fund and Aditya Birla Investments last year.

CloudExtel expects organic growth in its wireless offerings over the next 2-3 years. “Unlike 4G, we are not at that cusp yet in 5G where the existing capacity that had been rolled out on the network was getting saturated, since the 5G use case is yet to catch on. When this existing capacity gets saturated, that’s when the need again for small cells and light sets is going to be much more significant, and we are prepared for that growth phase,” said Bajaj. CloudExtel’s portfolio currently includes about 6,400 sites now across 550-plus cities and towns across the country, he added.

Though CloudExtel is primarily focused on metros, Bajaj confirmed plans to expand in Tier-2 and Tier-3 cities, where data consumption is outpacing metro areas. “We’re already in 50 towns and see future growth coming from these regions,” he said.

(with inputs from bl intern Rohan G Das)

Published on June 18, 2025