Network infrastructure firm Lightstorm has raised ₹2,500 crore in 10-year debt from IndusInd Bank to build AI-focused fibre networks across India. The funding will connect data centre hubs in Mumbai, Chennai, and Hyderabad. The company, backed by I Squared Capital, is currently preparing for an initial public offering (IPO) expected in mid-2027.
Lightstorm, a company focused on building network infrastructure, has secured a ₹2,500 crore, 10-year debt facility from IndusInd Bank. This capital is designated for the construction of what the company calls "AI fibre highways" to connect critical data centre clusters throughout India.
The project aims to create a high-speed fibre network linking major cities including Mumbai, Chennai, and Hyderabad. As artificial intelligence applications require massive amounts of data to be processed and transmitted quickly, this new infrastructure is designed to provide the necessary backbone for AI and cloud computing workloads. This development follows the company’s recent collaboration with Microsoft and other partners on the I-2SEA subsea cable system, which connects India to Singapore and Malaysia.
While Lightstorm is not yet a publicly traded company, its expansion efforts are a point of interest for market observers monitoring the infrastructure sector. The company, which is backed by investment firm I Squared Capital, is reportedly preparing for an IPO targeted for mid-2027. This significant debt raise is a strategic move to scale its network capacity ahead of that public listing.
There are several business aspects investors should track as the company grows. First, the infrastructure business is capital-intensive, meaning it requires large amounts of money to build and maintain the network. This raises the risk of execution, where large-scale projects could face delays or cost increases. Second, the company’s revenue is dependent on demand from large technology companies known as "hyperscalers." If these clients reduce their spending or switch service providers, it could impact Lightstorm’s business. Furthermore, since the company manages infrastructure across borders, it faces risks related to changes in exchange rates if it takes on foreign currency debt without proper protection.
The company has been building a nationwide fibre network since 2020. With this new debt facility, the next major update for market watchers will be the progress on the domestic AI corridor and the company's ability to onboard new enterprise customers to utilize this increased capacity before its planned IPO.