This article originally appeared at The WHIR
Indian cloud hosting provider ESDS Software Solution is raising $4 million from Canbank Venture Capital Fund to open three data centers over the next couple of years.
Initially, the investment will be put towards the first phase of a 200,000-square-foot data center in Navi Mumbai to be open by April 2015.
According to a report by Economic Times, Canbank is a subsidiary of public sector bank Canara Bank.
ESDS is also planning a 100,000-square-foot data center in Bengaluru and a 50,000-square-foot data center in Nashik, India, and would raise additional funds from a combination of debt, internal accruals and further private equity investment.
The company was founded in 2005 by Piyush Somani, a former director of WebHosting UK.
ESDS has already raised $1.6 million from German bank KFW and Small Industries Development Bank of India. It has customers including Pizza Hut, Kafila, Essel Propack and Maharashtra State Election Commission.
As an emerging market, India brings with it lots of investment opportunity and room for infrastructure development. Recently, Facebook launched an app with Reliance Communications to bring free Internet access to underserved markets in India.
More Internet access is a good thing for service providers as businesses will require additional services to support their online efforts. Ecommerce in particular is expected to grow, with the online shopping market to reach $15 billion by 2016.
This article originally appeared at: http://www.thewhir.com/web-hosting-news/indian-cloud-host-esds-software-raises-4-million-data-center-growth
