Funding · Enterprise Software & IT

Lightstorm raises ₹2,500 crore debt for AI infrastructure

By Startup Enthusiast · 11 August 2026

What they do

Lightstorm builds high-capacity terrestrial and subsea fibre networks for data centres

It secured a fully underwritten ₹2,500 crore facility from IndusInd Bank with a 10-year term

Funds will expand the AI Superhighway and refinance existing NIIF debt within 18 months

Lightstorm Telecom Connectivity raised ₹2,500 crore in debt financing from IndusInd Bank.
The facility is a fully underwritten long-term loan with a 10-year tenor.
Proceeds will fund the AI Superhighway buildout and terrestrial fibre expansion projects.
The company plans to extend its I-2SEA subsea cable system over 24-36 months.
Existing ₹700 crore debt from NIIF Infrastructure Finance Limited will be refinanced.
Management denied any stake sale despite prior reports of interest at a $1.5B valuation.
An IPO is considered but remains a low priority compared to immediate funding needs.
Domestic deployment timelines target initial corridors within 12-18 months.

India's data centre capacity potential is projected at 7-8 GW by 2035.
Committed investments in the sector total approximately $250 billion.
The I-2SEA consortium includes major players like Microsoft and Tata Communications.
Lightstorm aims to connect India to Southeast Asia hyperscale hubs via new links.

The company operates an AI Superhighway using deep-trenched high-capacity terrestrial fibre.
It manages the I-2SEA subsea cable connecting India to Singapore and Malaysia.
Network scope covers domestic southern corridors and international links to Southeast Asia.
Lightstorm maintains over 30,000 km of existing terrestrial fibre infrastructure.
The firm controls more than 21,000 km of existing subsea fibre assets.
It connects to over 100 data centres globally through its network.
Deployed capacity exceeds 3,000 Tbps across its optical network systems.
Technology stack includes SmartNet, Polarin, and AI Fabric layers.
Services include DC interconnect, cloud connect, and virtual network edge solutions.

IndusInd Bank (lead) — A major Indian private sector bank providing corporate banking services.
NIIF Infrastructure Finance Limited (existing) — Provided a ₹700 crore credit line that is being refinanced.
I Squared Capital (backer) — A private equity firm backing Lightstorm's infrastructure projects.