Lightstorm, a portfolio company of I Squared Capital, has announced a significant Rs 700 crore funding round from NIIF Infrastructure Finance Limited (NIIF IFL). This investment will bolster Lightstorm’s mission to expand its fiber network and solidify its presence in India’s rapidly growing digital infrastructure market. This substantial injection of capital underscores the increasing demand for robust and reliable connectivity solutions in the country, particularly as data-intensive technologies like AI become more prevalent.
Expanding India’s Fiber Network: A Foundation for Digital Growth
Lightstorm entered the Indian market in 2020 and has quickly established itself as a key player in the digital network infrastructure space. Already boasting a 30,000-km fiber network serving over 100 customers, the company specializes in providing solutions for hyperscalers, cloud-native companies, and large enterprises. This new funding represents a major milestone in Lightstorm’s journey, enabling them to significantly expand their reach and capacity.
The company’s focus is on delivering resilient, secure, and scalable network services that seamlessly integrate across diverse cloud and data center environments. This is crucial in today’s interconnected world, where businesses rely heavily on seamless data transfer and access to cloud resources.
Addressing the Connectivity Demands of AI and Data Centers
Lightstorm’s strategic vision aligns perfectly with the evolving needs of the digital landscape. The company plans to utilize the new investment to enhance its capacity and meet the surging demand for high-speed, reliable connectivity in critical areas. These include AI data centers, intercity digital highways, and undersea cable landings.
Amajit Gupta, Group CEO and Managing Director of Lightstorm, highlighted the crucial role of advanced fiber networks in supporting large AI workloads. He emphasized that AI chipsets consume significantly more bandwidth and power compared to traditional computing, making robust infrastructure a necessity. Gupta also pointed out that much of India’s existing fiber infrastructure is inadequate for the rapid digital growth the country is experiencing, making Lightstorm’s work even more critical.
Lightstorm has already invested over $100 million in building its current network, connecting approximately 65 data centers. The debt financing from NIIF IFL will allow the company to strategically balance its portfolio and fund the next phase of its ambitious infrastructure projects. Importantly, Lightstorm has demonstrated its financial viability by generating its own cash flow and achieving profitability, positioning it well for long-term expansion.
Competing in a Dynamic Market
While a relatively new entrant, Lightstorm has its sights set on competing with established telecom giants like Bharti Airtel and Reliance Jio in the enterprise fiber market. The company is actively pursuing several large-scale projects, including new cable landing stations and hyperscale fiber networks connecting major Indian cities.
Gupta believes these projects will be instrumental in meeting the future connectivity demands of businesses, particularly with the increasing adoption of AI, cloud computing, and other data-intensive technologies. Lightstorm’s focus on these cutting-edge technologies and its commitment to building robust infrastructure positions it as a key player in India’s digital future.
NIIF IFL: A Partner in Infrastructure Development
NIIF IFL, an infrastructure debt fund, plays a vital role in refinancing operational infrastructure projects and providing sustainable financing solutions. Its investment in Lightstorm reflects its commitment to supporting the development of critical digital infrastructure in India. This partnership will enable Lightstorm to accelerate its expansion plans and contribute significantly to the nation’s digital transformation.
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