Kotak Data Center Fund invests in Sify’s Data Center business

Kotak Data Center Fund (KDCF), managed by Kotak Alternate Asset Managers (KotakAlt), announced an investment of Rs 600 crore in Sify Infinit Spaces (SISL), a wholly-owned subsidiary of Sify Technologies (‘Sify’). 

Srini Sriniwasan, Managing Director, Kotak Alternate Asset Managers said, “We are delighted to partner with Sify to build out the Data Center capacity in India and contribute to the goal of a digitally savvy India, based on the strength of Sify’s entrepreneurial capabilities and experienced management team. Data Centers are at the core of the country’s Digital India ambition, and we believe that with vibrant entrepreneurship in the digital space, rich media consumption by an exploding well- connected population and increasing requirements for local storage of data, India’s Data Center sector is a long-term secular opportunity.” 

With this transaction, KotakAlt managed funds total equity commitment to SISL is Rs 1,600 crore, of which Rs 1,000 crore has been invested to date including the current investment of Rs 600 crore. The KDCF investment is in the form of Compulsorily Convertible Debentures, which will be converted into equity based on the operational performance of SISL over a specified reference period. The funds would be used to expand SISL’s Data Center capacity across India and invest in renewable energy. 

MP Vijay Kumar, Executive Director and Group CFO, Sify said, “Kotak Alternate Asset Managers’ continuing investment in Sify Data Centers is an endorsement of our roadmap for Sify’s Data Center business and the larger potential within the Indian geography. This partnership gives us the needful equity to scale up our Data Center footprint and realize our opportunities faster. Our intent is to build capacity in sync with customer demand, in the most modular design and by deploying the latest and most cost-effective technologies.”