Kotak Mahindra Bank-led arm announced that it raised USD 590 million (roughly Rs 4,885 crore) for investments in data centers in the country.
According to a statement filed in the exchanges, Kotak Investment Advisors (KIA) plans to raise USD 800 million through the Kotak Data Centre Fund, and this is the first close for the fund. According to the statement, the fund is the country’s first such dedicated platform to invest in data centers, and it will be domiciled in GIFT City in Gujarat, where entities will receive a slew of benefits.
Kotak Mahindra Bank plans to raise up to $1 billion to invest in the data center space. KIAL has raised/managed/advised in aggregate of over USD 6.8 billion across different asset classes, including real estate, private equity, infrastructure, special situations fund, and investment advisory, since its inception in 2005. Typically, it raises money from investors to bet on opportunities it sees for higher returns, and usually, it puts in its own money as well.
Rahul Shah, executive director of KIA, pointed out that India’s current data center capacity is significantly lower than the rapidly growing demand. He further highlighted that the industry, being one with high capital expenditures and requiring extensive capacity building, presents a promising opportunity for equity investment.
Shah also said that he had confidence in the fund’s ability to provide strategic risk capital to support partners in building up their capacities. With this in mind, the fund seeks to back entities by investing in their growth potential and offering financial support to help create and expand their production capabilities.
Managing Director of KIA, Srini Sriniwasan, stated that India is on the brink of a data revolution, with the ongoing development of digital infrastructure and the impending rollout of 5G. According to him, this development will pave the way for Indians to have access to a wealth of data even before they achieve financial prosperity.