NxtGen raises USD 13.5-mn; invest on expansion

IT infrastructure services company, NxtGen Datacentre and Cloud Technologies, has raised USD 13.5 million (about Rs 85 crore) from International Finance Corporation (IFC), Axon Partners Group and Intel Capital as part of a second strategic (series B) funding.
Besides expansion, the fund will be used to complete a high density data centre facility in Bengaluru and increase investments in cloud infrastructure, NxtGen said in a statement today.
It has two data centres in India -- Mumbai and Bengaluru -- and has offices in four major metros Bengaluru, Mumbai, Chennai, and Delhi, it added.
"This funding will enable us to further strengthen our growth plans in India and initiate our international strategy," A S Rajgopal, Chief Executive Officer NxtGen said.

Affordable and effective IT infrastructure co-location and cloud computing services are "increasingly important for digital inclusion and economic development", Atul Mehta, IFC Director for Telecom, Media, and Technology, Venture Capitals and Funds said.
Axon Partners specialises in growth capital investments in the digital technology market and will take the position of international corporate partner of NxtGen, using its international presence and expertise within emerging markets to support the company in its international growth plans, specifically into Latin America and the Middle East, it said.

NxtGen is Axon's second investment in the cloud technology sector, having invested in O4IT, a leading cloud technology services company in Latin America, in 2014.

Axon is investing with its India Opportunities Fund, which has also invested in companies like iYogi and Captronics Systems, and recently performed a successful exit of JustEat India.
The Bengaluru-headquartered company has 105 employees and over 200 channel partners.