Tue Nov 05 07:39:36 UTC 2024: ## L&T Invests Rs 1,407 Crore in AI-Focused Cloud Platform E2E Networks
**Mumbai, India -** Larsen & Toubro (L&T) has announced a strategic investment of Rs 1,407 crore in E2E Networks Ltd, an AI-focused hyperscale cloud platform. The investment, a mix of primary and secondary transactions, will see L&T acquire a 21% stake in the Delhi-based company.
E2E Networks specializes in providing cloud computing services, particularly utilizing CPU and GPU resources in partnership with NVIDIA. The company has seen significant growth in recent years, with revenue rising to Rs 94.46 crore in FY24, representing a valuation of over 70 times its FY24 turnover.
The investment will be split into two parts: L&T will initially invest Rs 1,079.27 crore for a 15% stake through a preferential allotment. Subsequently, they will acquire an additional 6% stake from the founders for Rs 327.75 crore. The deal is expected to be finalized by December 31, 2024.
Despite its significant investment, L&T will remain a minority shareholder in E2E Networks, holding protective rights but not full control. This partnership is expected to accelerate E2E’s growth and strengthen L&T’s position in the high-demand cloud infrastructure sector.
E2E Networks has also recently raised $50 million in August, led by Paragon Partners. This latest investment from L&T further underlines the growing demand for AI and cloud solutions in India, and positions both companies to capitalize on this expanding market.
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