- CloudExtel has obtained ₹200 crore in debt to finance expansion of AI-ready fibre and data-centre interconnect infrastructure.
- The funds will support a new DCI network starting in Mumbai and extending to other major metro-cities, designed for high-capacity, low-latency connectivity for AI and cloud workloads.
What happened: CloudExtel Secures ₹200 Crore to Launch AI-Focused DCI Network
CloudExtel, a Mumbai-based full-stack Network-as-a-Service provider, announced on 27 November 2025 that it has secured ₹200 crore in debt funding from a private bank to support its next growth phase. Alongside the debt raise, the company’s existing shareholders have injected follow-on equity on a proportionate basis, signalling continued investor commitment.
The proceeds are earmarked for the launch of a Data Centre Interconnect (DCI) network initiative, which will begin in Mumbai and expand to other major metro areas including Bengaluru, Hyderabad, Delhi and Pune. This DCI is intended to deliver high-capacity, low-latency and redundant links between data centres — infrastructure that is critical for supporting AI workloads, cloud services and digital content delivery.
CloudExtel, backed by investors such as Macquarie Capital and Advencap, already operates a substantial network across India — including thousands of kilometres of fibre and thousands of small-cell deployments.
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Why it’s important
As AI, cloud computing and high-volume content delivery become more central to digital services, the demand for robust, high-capacity, low-latency infrastructure is increasing rapidly. The planned DCI network by CloudExtel could help address this need — facilitating faster, more reliable connectivity for operators, enterprises, and data-centre operators.
Moreover, the financing itself may mark an inflection point: the debt raise has been described as “a first-of-its-kind fibre network project financing” by the lending bank — a signal that investors see long-term potential in infrastructure plays in India’s digital ecosystem.
That said, the rapid build-out raises a few questions. Will this network be able to scale in a way that ensures quality and redundancy without compromising on costs? And with many players eyeing data-centre expansion in India, will the fragmentation of infrastructure providers hamper — rather than help — the goal of a cohesive, nationwide, high-performance backbone?
Given rising energy demands, urban planning constraints, regulatory requirements and competitive pressures, the execution risk remains significant — meaning success is anything but guaranteed.
