Data and cloud hosting firm raising $4M from Canbank Venture Capital Fund

Nashik-based data centre services and cloud hosting firm ESDS Software Solution Pvt Ltd is raising Rs 25 crore ($4 million) from Canbank Venture Capital Fund, a subsidiary of public sector lender Canara Bank Ltd.

The fund will be used to set up three data centres over the next two years.

"We should be able close the funding by June," said S Thiruvadi, managing director, Canbank Venture Capital Fund.

The firm is investing in the first phase of a 200,000 sq ft data centre in Navi Mumbai. It is scheduled to be launched in April 2015.

"In addition, a 100,000 sq ft data centre in Bengaluru is under planning stage and a 50,000 sq ft data centre in Nashik will be set up in addition to the existing one," said Piyush Somani, chief executive and managing director, ESDS Software.

For the data centres at Bangalore and expansion of Mumbai unit, the funding would be raised with a combination of debt, internal accruals and further round of private equity investments.

The company was founded in 2005 by first generation entrepreneur Piyush Somani (MD and CEO). He was earlier associated with WebHosting UK Com Ltd as the director.

Earlier, the company had raised Rs 10 crore ($1.6 million) debt from German international development bank KFW and Small Industries Development Bank of India.

(Edited by Joby Puthuparampil Johnson)