CloudExtel raises Rs 200 Cr debt to expand fibre and data-center connectivity network

CloudExtel, a Mumbai-based Network-as-a-Service (NaaS) provider, has raised Rs 200 crore in debt from a leading private-sector bank to support the expansion of its digital infrastructure network.

The existing shareholders have also participated through a proportionate follow-on equity infusion, extending their support for the company’s next phase of growth.

The newly raised capital will be used to scale CloudExtel’s fibre footprint and to launch its planned Data Centre Interconnect (DCI) network. The DCI initiative will begin in Mumbai and later expand to Bengaluru, Hyderabad, Delhi, Pune and other metros, providing high-capacity and low-latency links between data centres, an increasingly critical requirement as AI workloads, cloud computing and digital content traffic continue to rise.

“This fundraise marks a significant breakthrough in our journey to transform India’s connectivity ecosystem. The trust placed in us underscores our strong financial discipline and innovative business model. These funds will help us scale more rapidly, deepen our infrastructure presence, and continue driving impact through collaboration and technology-led efficiency," Kunal Bajaj, CEO and Co-founder of CloudExtel, said.

"Our upcoming Data Centre Interconnect network in Mumbai, and subsequent rollout in other cities, will further strengthen our competitive positioning and ability to deliver integrated solutions for India’s digital future. DCI is powering the AI revolution, and this initiative is a step towards our aspiration to become one of the largest metro intra-city network providers in the country,” he further added.

Founded as India’s first full-stack NaaS operator, CloudExtel builds and manages shared fibre networks, small-cell infrastructure and enterprise connectivity solutions for telecom operators, internet service providers, data centers and businesses. The company’s model aims to reduce the high upfront capital requirement typically associated with network rollout by allowing partners to use infrastructure on a consumption basis.

CloudExtel has so far deployed more than 6,500 small cells across 500 cities, laid over 12,000 km of fibre, and enabled FTTH access to more than one million homes. The company also contributes to 4G densification efforts and supports the ongoing nationwide rollout of 5G networks.

Backed by investors including Macquarie Capital and Advencap, CloudExtel says the new funding strengthens its ability to build out urban connectivity infrastructure and expand its position as a metro intra-city network provider.