India Apr 10: CloudExtel, a leading Network-as-a-Service (NaaS) provider in India, announced that CARE Ratings has significantly upgraded the rating for its long-term bank facilities to ‘CARE A+; Stable’ from ‘CARE A-; Stable’. This marks a significant two-notch improvement in our standalone credit profile. The upgrade reflects the company’s sustained growth momentum, improving profitability, and a significantly strengthened financial profile.
The rating action recognizes CloudExtel’s consistent scale-up across its core business segments, including small cell hosting, fiber network deployment, and Fiber-to-the-Home (FTTH) connectivity. Over the past two years, the company has delivered strong revenue growth, driven by surging demand for high-speed data infrastructure and the rapid rollout of 5G across India.
CARE Ratings highlighted the company’s stable revenue model, underpinned by long-term master service agreements with leading telecom operators and ISPs. These contracts, often featuring lock-in periods and exit penalties, provide high revenue visibility. Furthermore, CloudExtel’s improving operating performance and margin expansion, driven by better realizations in small cells and robust fiber projects, were pivotal to the upgrade.
Kunal Bajaj, CEO & Co-Founder of CloudExtel, said: “This two-notch upgrade reflects our consistent focus on building CloudExtel on a strong foundation of disciplined execution, financial prudence, and long-term vision. We have delivered robust growth while steadily reducing leverage. This reflects our strong commitment to building scalable, high-quality digital infrastructure to support India’s rapidly expanding data demands.”
He further added, “Over the past few years, we have significantly expanded our footprint while strengthening partnerships across the ecosystem. With the continued support of our investors and the unwavering commitment of our team, we are well-positioned to play a pivotal role in accelerating India’s digital transformation.”
The upgrade also factors in CloudExtel’s disciplined capital management and reduced reliance on external debt, supported by continued equity backing from marquee investors Macquarie Capital and Advencap.
As India accelerates toward a fully connected digital future, CloudExtel continues to lead with cutting-edge infrastructure, a customer-first approach, and a mission to shape the country’s digital destiny.
