Rathi Brothers' ₹1400 Crore Exit: Iron Mountain Acquires Web Werks

Iron Mountain has acquired Web Werks, with the latter's co-founders, Nikhil and Nishant Rathi, selling their entire stake to the US-based company for Rs 1,400 crore. Although the Rathi brothers are no longer involved with Web Werks, they continue to own their software development company, NeoSOFT. They plan to expand their digital services and AI-driven platform, NeoNXT.

Iron Mountain had previously invested USD 150 million in Web Werks in 2021, followed by an additional USD 170 million in 2023. The latter investment was part of a joint venture that led to the construction of three new data centres in India over the course of 18 months. "We completed the construction of three new data centres within 18 months and secured customers within 22 months," said Nikhil Rathi. As part of the deal, the Rathi brothers are bound by a non-compete clause, preventing them from holding more than a 26 percent stake in any Indian data centre company until the end of FY27. However, they are free to explore opportunities in rapidly growing markets like the Middle East.

NeoSOFT, which employs 4,000 people, provides digital engineering and enterprise modernization services across various sectors, including hospitality, e-commerce, healthcare, manufacturing, and telecom.

Iron Mountain now operates six data centres in India with a combined capacity of 14 MW and is expanding with three new campuses in Mumbai, Chennai, and Noida, which will have a total potential capacity of 152 MW to meet the growing demand for digital and AI services in the country.

News by Rahul Yelligetti.