Macquarie acquires majority stake in CloudExtel
Macquarie Capital has invested $100 million in network service provider CloudExtel for a majority stake in the company.
, the principal investment arm of Macquarie Group, has acquired a majority stake in Excel Telesonic India Private Limited, the parent entity of network service provider , at an investment of $100 million.
The investment will enable CloudExtel to develop and roll out its telecommunications infrastructure portfolio, particularly in small cells and fibre. It will also fund the company’s foray towards virtualised networks, said a statement issued by Macquarie.
Founded in 2015, Mumbai-headquartered CloudExtel is a unit of Bombay Gas Company, which will now hold minority shares.
“The demand for internet data via mobile networks has risen 20-fold since 2015 in India. Adequate infrastructure to decongest networks and enhance connectivity is a must for high quality of user experience," said Kunal Bajaj, CEO and Co-founder at CloudExtel in the statement. "Furthermore, tower fiberisation in India stands at 33%, versus ~70% in mature global markets. Enterprise and household fibre penetration is even lower. These gaps depict the opportunities that lie ahead for CloudExtel.”
He added, “Partnering with Macquarie Capital and their flexible balance sheet will help us to substantially scale our infrastructure services and imbibe global best practices, ultimately leading to superior networks for telecom operators and delighted end users.”
CloudExtel offers Network-as-a-Service (NaaS), providing infrastructure services such as Small Cell Hosting, FTTH, Intra-City Fibre and Virtualised Networks to telecom operators and internet service providers. CloudExtel’s customers also include data centres, enterprises and large content providers, across 400 cities and towns in India.
“With the rapid growth of digitalisation, better network coverage and capacity is essential to enabling people to stay connected,” said Ivan Varughese, Senior Managing Director and Head of Infrastructure and Energy Capital, Asia-Pacific at Macquarie Capital.
He further added, “We are excited to leverage our global experience to support CloudExtel in expanding their telecommunications portfolio as well as enhancing the quality and effectiveness of connectivity for local communities across India.”
Australian firm Macquarie has backed multiple infrastructure assets in India across renewable energy, thermal and hydropower plants and toll roads.
Edited by Megha Reddy
MOST VIEWED STORIES
