Teraco Data Environments, a vendor neutral colocation data centre operator and Internet exchange point (IXP) has announced that it has increased the size of its medium term funding facility to R400m, secured from Barclays Africa.
“This is a further significant milestone for Teraco. This facility, together with internally generated funds are earmarked for continuing our large scale investments into Data Centre Infrastructure roll-outs,” says Jan Hnizdo, Teraco’s Chief Financial Officer.
Teraco builds and operates colocation data centre facilities that enable clients to deploy telecommunications equipment and other key IT infrastructure in a scalable way. Teraco further provides clients with a secure environment where they are able to easily connect to submarine cable systems, local terrestrial networks, most major African IP backbones and key content aggregation hubs.
“Teraco’s premium data centre services are in high demand, and the demand is set to continue underpinned by strong growth in the Internet and increased cloud adoption,” says Lex van Wyk, CEO of Teraco.
Teraco has seen a rapid expansion in its footprint over the last three years to include three state-of-the-art data centres located in Cape Town, Durban and Johannesburg, which combined, comprise 10 MVA of power plant, powering over 6,000m2 of data centre space. Teraco is also home to NAPAfrica, Africa’s largest neutral layer-two Internet exchange point (IXP), a home to more than 180 peers across sub-Saharan Africa.
Hnizdo says the Barclays Africa funding facility will allow for the construction of a large new data centre in Johannesburg to meet continued client demand. The initial phases in the construction of the JB2 facility are projected to commence in 2015.
“Barclays Africa has been an integral partner to the continued success of Teraco, they have been supportive and flexible with regards to our growth ambitions and understand our unique business model associated infrastructure funding requirements,” concludes Hnizdo.
“This is an exciting sector right now. We are delighted to assist Teraco again in the funding of their new data centre to meet continued client demand and to help them in delivering on their client proposition” says Jason Abt, Head of Leveraged Finance and Corporate Debt, from Barclays Africa.
“Telecommunications is an exciting industry to be in right now – it is at the heart of the explosive innovation and growth centred around the Internet – and Teraco has rapidly evolved into being the internet exchange point (IXP) and connectivity hub for sub- Saharan Africa. The securing of the additional Barclays Capital funding will allow Teraco to remain a significant contributor in the industry,” van Wyk concludes.
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Naspers feeds into Latin America’s tech funding
Movile will get $400m funding from the SA-based technology investment giant for iFood expansion.
Movile is to receive US$500-million in funding for iFood in the largest tech funding in Latin America to date. Naspers and Innova Capital have committed to invest $400m of new capital into Movile to use for further investment in iFood, the leading online food delivery platform in Latin America, of which Movile is a majority shareholder.
Movile and Just Eat have already invested $100m in iFood during 2018. iFood’s extraordinary growth and the vast market opportunity in Brazil and more broadly in Latin America has driven the increased investment commitment.
iFood’s monthly orders in Brazil have fed more than 9 million customers in the past twelve months, 16 times the nearest online competitor, in terms of daily active users. This means its partner restaurants are serving the biggest population of consumers ordering food in Latin America. iFood has 50 000 restaurant partners and uses 120 000 couriers.
The increased investment commitment from Naspers, Innova and Movile is expected to accelerate growth, speed up product development and innovation, and fuel geographical expansion for iFood across the region. The company’s vision is to gain deeper knowledge of consumers through artificial intelligence technology, to personalise the food delivery experience – and at a reduced price, because of improved logistics.
“Movile is very fortunate to have long-term investors who have supported us for the past decade to help achieve our goal of transforming the lives of more than one billion people and thus we are able to continually back iFood to ensure it remains the market leader,” said Fabricio Bloisi, Movile CEO.
“Our entire ecosystem of companies is focused on allocating resources and energy towards our one billion people goal. iFood is leading the way, fueling unprecedented growth through its innovative technology platform, providing consumers, couriers and restaurants with the best experience in food ordering and delivery.”
Larry Illg, CEO of Naspers Ventures, said: “iFood has established itself as a technology leader in Latin America and its success stacks up with some of the most innovative food companies that are leading regions in North America, Europe and Asia. We have been impressed by their execution in Brazil and remain committed to backing the company on its path to transform the entire food chain to better serve consumers.”
Online food delivery is experiencing massive expansion globally. According to latest reported results, Grubhub grew daily average orders 39% year-on-year, reaching over 416 000 orders per day. In Latin America, iFood has reached 390 000 orders per day just in Brazil in the last week of October, compared with 183 000 in October 2017, representing 109% growth.
iFood CEO Carlos Moyses said: “We want our consumers to have an amazing delivery experience from the moment they order their food to the moment it arrives. Our partners – the restaurants and delivery fleet – make that happen by living our purpose of improving people’s lives using our services.
“iFood exists for our customers and, with an increased investment commitment of this size, we will be able to build out our state of the art technology platform, and increase our courier and restaurant partners to even better serve our current and future customers in Latin America.”
SEACOM buys fibre provider
The pan-African telecommunications service provider, and undersea cable owner SEACOM has bought 100% of FibreCo Telecommunications.
FibreCo owns and operates a national open access dark fibre network, providing infrastructure, connectivity and services across South Africa. The acquisition is subject to approval by the South African Competition Commission.
SEACOM says this acquisition represents another major milestone towards achieving its vision to expand its African footprint through the consolidation of fibre assets. SEACOM believes this is necessary for the evolution of the market, particularly as 5G arrives with its requirement for pervasive fibre networks.
SEACOM connects South Africa to the east coast of Africa, India and Europe and FibreCo connects over 60 points of presence across South Africa, including major data centres in Johannesburg, Cape Town, Bloemfontein, Durban, Port Elizabeth and East London. FibreCo’s network also connects the SEACOM subsea cable system, which lands in Mtunzini on the east coast of South Africa), to the WACS cable that lands at Yzerfontein on the west coast. This enables fully redundant high-speed ring protection “for diversity around the African continent”.
According to a SEACOM statement, “The FibreCo acquisition significantly strengthens SEACOM’s operations in South Africa by creating a platform for the expansion of its business services. It enables the delivery of high-speed Internet connectivity and cloud products into smaller cities and towns across the country, which have typically been under-serviced.”
FibreCo’s current shareholders say that they have met the original intent behind starting the business in 2009, namely “to successfully transform South Africa’s long-haul bandwidth transmission landscape”.