Kotak Data Center Fund grants Sify $73 million

Sify has raised over $70 million to develop new data centers. This funding was made public this week during the company's quarterly earnings report. Sify and Sify Infinit Spaces Limited ("SIS"), a wholly-owned subsidiary of Sify that operates its data centers, recently entered into a contract with Kotak Data Center Fund (KDCF), whereby KDCF will invest up to $73 million in the means of mandatory convertible debentures in SIS.

According to the company, SIS will use the revenue to develop new data centers, including purchasing land for data centers, investment in the procurement of alternative electricity sources, and debt repayment. Kotak Alternate Assets, the investment arm of India's Kotak Mahindra Bank, closed its first data center fund with $590 million in financing in February 2023 to invest in data centers nationwide. In 2021, Kotak previously invested $135 million in Sify.

Quarterly revenue for Sify was $104.4 million. The EBITDA was $21 million, and the profit was $116,000. A public sector trading platform, an industrial chemicals company, a public sector housing financier, and a mobile engagement platform joined the company's clientele during the quarter.

In September 2021, Sify revealed plans to nearly triple its data center presence in the country over the next two years and add 200MW over the following four years. The company then raised $135 million from Kotak Mahindra Bank. At the time, the company intended to construct new facilities in Mumbai, Noida, Chennai, Bangalore, and Hyderabad. Additionally, Sify has partnered with struggling US colo company Cyxtera.