Mumbai: Canbank Venture Capital Fund Ltd, the subsidiary of public sector bank Canara Bank Ltd, on Thursday announced that it will be investing 25 crore in data centre services and cloud hosting firm ESDS Software Solution Pvt. Ltd.

Nashik-based ESDS is looking to set up three data centres over the next 24 months.

Canbank Venture Capital Fund has invested in the first phase of a 200,000 sq. ft data centre in Navi Mumbai, to be launched in April 2015.

“In addition, a 100,000 sq.ft. data centre in Bengaluru is under planning stage and a 50,000 sq.ft data centre in Nashik will be set up in addition to the existing one," said Piyush Somani, chief executive and managing director, ESDS Software.

For the data centres at Bengaluru and expansion of Mumbai data centre, the company would raise funds from a combination of debt, internal accruals and further rounds of private equity investments, said Somani.

Earlier, the company had raised 10 crore debt from German international development bank KFW and Small Industries Development Bank of India (Sidbi).

ESDS expects to close fiscal 2015 with a revenue of 45 crore.

Canbank has the made the investment through 435 crore Emerging India Growth Fund.

Canbank Venture Capital Fund has so far raised five funds with a total corpus of 620 crore.

Canbank Venture Capital Fund is planning to raise a sixth fund of Rs500 crore, according to S. Thiruvadi, managing director, Canbank Venture Capital Fund. “We should be able close the fund raise by June," he said, adding that this time around they have also received interest from private banks for investing in their fund, apart from its regular investors such as PSU banks and insurance companies.