Lightstorm raises Rs 700 crore in funding from NIIF IFL to fuel India growth

Lightstorm, a portfolio company of I Squared Capital, has raised Rs 700 crore in funding from NIIF Infrastructure Finance Limited (NIIF IFL) to expand its fiber network and strengthen its presence in India’s digital infrastructure market. 

The new funding marks a major milestone for Lightstorm, which entered the Indian market in 2020 and has since built a 30,000-km fiber network serving more than 100 customers.

Lightstorm is a specialist in digital network infrastructure solutions across the Asia-Pacific region. It focuses on meeting the connectivity requirements of hyperscalers, cloud-native companies and large enterprises.

Its goal is to provide resilient, secure and scalable network services that enable seamless integration across various cloud and data center environments.

Focus on connectivity and AI data centres

Lightstorm aims to use this investment to improve its capacity and meet the growing demand for high-speed, reliable connectivity in areas such as AI data centres, intercity digital highways and undersea cable landings. 

According to the company’s Group CEO and Managing Director, Amajit Gupta, large AI workloads are driving up the need for advanced fibre networks since AI chipsets consume significantly more bandwidth and power than traditional computing. He believes much of India’s fiber infrastructure has been overlooked and needs to be upgraded to support rapid digital growth.

Gupta said Lightstorm has already spent over $100 million on building its current network, which connects about 65 data centres. By securing additional debt financing from NIIF IFL, the company aims to balance its portfolio and fund the next phase of infrastructure projects. 

Lightstorm has been generating its own cash flow and turning a profit, which Gupta said shows that the company is well-positioned to deliver on its long-term expansion plans.

Competing with established players

Although it is a relatively new entrant, Lightstorm is looking to compete with major telecom players like Bharti Airtel and Reliance Jio in the enterprise fiber market.

Gupta said the company is in discussions for several large-scale projects, including new cable landing stations and hyperscale fiber networks connecting major Indian cities. He believes these projects will play a key role in meeting the future connectivity needs of businesses, especially with the rising adoption of AI, cloud computing and other data-intensive technologies.

NIIF IFL is an infrastructure debt fund that refinances operational infrastructure projects and offers sustainable financing solutions.