Netmagic Solutions, a managed IT hosting services provider, has raised Rs 70 crore ($15.7 million) in a round led by Nokia Growth Partners and Cisco Systems. Existing investors Fidelity International and Nexus Venture Partners also participated in the round. The funding will enable Netmagic Solutions to increase its datacenter footprint in Tier - I cities across India.
Netmagic also plans to increase investment in R&D for its cloud computing platform and other focus solution areas. The firm had raised Rs 80 crore from Fidelity and Nexus in early 2008. Its first round of funding was in back in 2000, when it raised $4 million from investors like Kanwal Rekhi and VCs like eVentures India and Global Technology Ventures.
Netmagic's Tier III+ datacenters are located in Mumbai, Bangalore, and Chennai and it also has a virtual data center in the United States.
“We are delighted to have raised fresh capital from Nokia Growth Partners and Cisco, and their industry expertise and global experience will help Netmagic as we continue our growth in managed hosting and cloud computing. Their investment reinforces our industry and technological leadership and the potential for this market in India.We will utilize this round of funding to increase our datacenter footprint and increase investment in R&D efforts for our Cloud Computing platform,” said Sharad Sanghi, Managing Director and CEO, Netmagic Solutions.
“The growth of internet traffic in India and willingness of Indian companies to adopt managed hosting are driving demand for high quality, carrier independent data center solutions. Nokia Growth Partners invests in leading technology companies with significant potential for future growth and industry leadership. We believe Netmagic fits this profile well and look forward to working with their management as they continue to build industry leading managed service solutions.” said Upal Basu from Nokia Growth Partners. Nokia Growth's latest investment in India was Web18, an arm of the media conglomerate Network18.
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