Net4India – India’s only listed hosting provider is set to raise Rs.20 Crores by diluting 15 % of its equity capital. Net4India earlier raised Rs.15 crores from Madison India to fund its expansion plans. This time the funding will be used primarily to expand its voice and data offerings.
Net4India provides diverse set of services like Corporate data centers, VoIP, Website hosting and Corporate email accounts solution. It caters to SME’s and large organizational demand for reliable hosting and data-centre services within the country. This segment constitutes around 41 per cent of its total revenues.Net4India reported revenues of Rs. 29.18 Crores and net profit of Rs. 2.16 Crores for Dec-09 quarter.
Net4India recently obtained LoI for providing national and long distance telephony services in the country. The company thus wants to explore this high growth segment with required capex plans. Net4India has an estimated capex plans of Rs.60 crores in offing for next 3 years which also includes expansion in field of MPLS based Virtual private network and IPLC ( International Private Leased Circuit). IPLC provides single point service access for geographically disperse companies.
The growing competition and declining margins in data centre and hosting operations is forcing Net4India to diversify its business operations. The integration of VoIP and other enterprise Internet access services will allow it to provide tailor made packages for Small and medium enterprises in India. ICT spending is on a continuous rise in India and integrated services are gaining massive advantage in this sector.
