NxtGen, a prominent provider of sovereign cloud services, has launched the country’s inaugural Financial Services Cloud (FSC), specifically designed to meet the stringent compliance, security, and data sovereignty requirements of India’s Banking, Financial Services, and Insurance (BFSI) sector.

The FSC platform ensures complete data residency within India, eliminating exposure to foreign jurisdictions and addressing growing concerns over data governance and regulatory compliance. This development offers a domestic alternative to global cloud hyperscalers, aligning with the increasing regulatory scrutiny faced by financial institutions.​ The FSC directly addresses over 400 regulatory controls imposed by key governing bodies, including the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI), Ministry of Electronics and Information Technology (MeitY), National Payments Corporation of India (NPCI), and the Indian Computer Emergency Response Team (CERT-In). The platform offers pre-integrated frameworks for full regulatory compliance and provides financial institutions with the “right to audit,” enabling direct verification of infrastructure-level security and compliance controls.

Designed for resilience, the platform offers disaster recovery and business continuity through geo-redundant infrastructure and customized recovery solutions. It also facilitates secure and regulation-ready integrations with FinTech partners, promoting collaboration within the financial ecosystem.

Benchmarking indicates that the FSC delivers high performance, outperforming global cloud providers, making it a future-ready solution for India’s financial institutions. The platform is already attracting interest from a diverse range of financial entities, including public sector banks, digital-first insurers, and emerging Non-Banking Financial Companies (NBFCs), all seeking scalable, secure, and compliant cloud solutions in a rapidly evolving regulatory landscape.

In parallel with this launch, NxtGen is reportedly aiming to raise $300 million at a valuation nearing $900 million, signaling its commitment to expanding its footprint in the sovereign cloud services market.
The introduction of the Financial Services Cloud marks a significant milestone in India’s digital infrastructure, offering a tailored, compliant, and secure cloud solution for the BFSI sector.