Macquarie Capital Takes Control Of CloudExtel For $100 Mln

Macquarie Capital acquired a majority stake in network-as-a-service provider Excel Telesonic India Private Ltd. (CloudExtel) for $100 million.

Macquarie Capital’s flexible capital investment will enable CloudExtel to further develop and roll out its telecommunications infrastructure portfolio, particularly in small cells and fiber, the companies said in a joint statement.

The Mumbai-based CloudExtel, which covers more than 400 cities and towns in India, offers its solutions to telecom operators, internet service providers, data centers, enterprises and large content providers, it added.

The companies said India is a large and fast-growing market with more than one billion mobile subscribers, presenting significant scope for growth in fiber deployment and high-capacity wireless solutions.

“We are excited to leverage our global experience to support CloudExtel in expanding their telecommunications portfolio as well as enhancing the quality and effectiveness of connectivity for local communities across India,” Ivan Varughese, senior managing director and head of infrastructure and energy capital - Asia Pacific at Macquarie Capital, said in the statement.

CloudExtel Co-Founder and Chief Executive Officer Kunal Bajaj said tower fiberization in India stands at 33% versus around 70% in mature global markets, while enterprise and household fiber penetration is even lower.

“These gaps depict the opportunities that lie ahead for CloudExtel,” Bajaj said. “Partnering with Macquarie Capital and their flexible balance sheet will help us substantially scale our infrastructure services and imbibe global best practices.”

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