Network-as-a-service provider CloudExtel secures Rs 200 cr external debt

Mumbai-based Network-as-a-Service provider CloudExtel, on Wednesday said, it has received Rs 150 crore in external debt from NIIF Infrastructure Finance Limited, and an additional Rs 50 crore from Aditya Birla Finance Limited to grow its market presence in fibre and small cells deployment.  The company has also received a first-time credit rating of ‘A-’ from CARE Ratings Limited.

CloudExtel had sold a 51% controlling stake to Macquarie Capital for $100 million in May 2023, buying out Bombay Gas Company’s shares in the company. Subsequently, Advencap, a digital infrastructure ventures investor, purchased a portion of Macquarie Capital's shares in the company in October 2023.

“India’s digital landscape is poised for substantial growth with emerging technologies set to revolutionise the ecosystem. This partnership with NIIF IFL and ABFL marks a significant step in our journey as the debt capital infusion will now be complementary to the investment by Macquarie Capital and Advencap,” Kunal Bajaj, CEO and Co-founder at CloudExtel said in a statement. 

“The combined capital will strengthen our position to effectively respond to market opportunities as we expand our deployment in network infrastructure to transform the telecom space,” he added. 

CloudExtel offers infrastructure services including small cell hosting, FTTH, intra-city fibre and virtualised networks to telecom operators, internet service providers, data centres, enterprises and others. 

In an interview with TechCircle published on 1 April, Bajaj outlined the company's ambitious plans to expand its fibre and wireless infrastructure by five times over the next five years, focusing on advancements in 4G, 5G, and data centres.

He explained that small cells are essential for next-generation networks, such as 5G, which will enable smart cities and the Internet of Things, and the number of small cells deployed is expected to increase rapidly over the next few years.

The surge in data consumption in India, combined with increasing urbanization, is expected to drive the demand for rapid infrastructure expansion. The company currently operates a network of 6,000 small cell sites across 475 cities and has deployed over 7,000 kilometres of fibre in more than 50 cities in the country.

Despite stiff competition from players such as picoNETS and Cyient, CloudExtel believes in its ability to leverage this substantial capital infusion to solidify its market position and drive innovation in the telecom infrastructure sector.