I Squared Capital Considers Partial Sale of Digital Infrastructure Platform Lightstorm

I Squared Capital Considers Minority Stake Sale in Lightstorm

Lightstorm, a pan-Asia digital infrastructure platform, is reportedly being evaluated for a 20% minority stake sale by I Squared Capital, a global infrastructure investor based in Miami. According to industry sources, I Squared Capital is seeking to tap private equity funds for the transaction, aiming to achieve a valuation of up to $1.5 billion.

The minority stake sale is part of I Squared Capital's value unlocking strategy, driven by the booming demand for data centers. The proposed deal is expected to be launched in March or April, with the investment major having already roped in an advisor. However, the plans are at an early stage and may be subject to change depending on market conditions.

Following the completion of the minority stake sale, Lightstorm is likely to prepare for an initial public offering (IPO) targeting a potential valuation of up to $2.5 billion within the next 18 to 24 months.

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Lightstorm, which has a presence in India, focuses on high-speed fiber and Network-as-a-Service (NaaS) solutions. The company has secured Rs 700 crore in funding from NIIF in February 2025, with plans to fuel its growth and tap into expansion opportunities.

I Squared Capital is a private equity firm managing over $50 billion in assets, with a diverse portfolio of investments across various sectors, including digital infrastructure. The firm has a global team operating across multiple offices and has invested in over 100 companies across more than 70 countries.

The Indian digital infrastructure market is experiencing significant growth, driven by the government's efforts to fast-track its telecom transformation. Key players, such as Blackstone and Adani Group, are investing heavily in the sector, with Blackstone planning a Rs 10,000 crore digital infra hub in Chennai and Adani Group announcing a $100 billion investment plan for renewable-powered, AI-ready hyperscale data centers.