India’s push to build local artificial intelligence infrastructure has received a major boost as Neysa secures significant financial backing to scale its compute capabilities. The Mumbai based AI infrastructure startup has received support from Blackstone, which will take a majority stake as part of a broader funding plan of up to $1.2B.
Blackstone, along with co investors Teachers’ Venture Growth, TVS Capital, 360 ONE Asset and Nexus Venture Partners, has agreed to invest up to $600M in primary equity in Neysa, the companies told a technology publication. The startup also plans to raise another $600M in debt to expand its GPU capacity. This marks a sharp jump from the $50M Neysa had previously raised. The deal comes at a time when global demand for AI computing is rising rapidly, creating shortages in specialized chips and data centre capacity required to train and run large models.
Neysa operates as a neo cloud provider offering customized GPU first infrastructure to enterprises, government agencies and AI developers in India. Co founder and CEO Sharad Sanghi said, “A lot of customers want hand holding and a lot of them want round the clock support with a 15 minute response and a couple of our resolutions. And so those are the kinds of things that we provide that some of the hyperscalers don’t.” Ganesh Mani, senior managing director at Blackstone Private Equity, said India currently has fewer than 60000 GPUs deployed and expects this to scale nearly 30 times to more than 2M in the coming years. Growth is being driven by government demand, regulated sectors like financial services and healthcare and AI developers building models locally. Global AI labs are also looking to deploy compute closer to Indian users to reduce latency and meet data requirements.
The investment aligns with Blackstone broader strategy in data centre and AI infrastructure, including past backing of platforms such as QTS, AirTrunk, CoreWeave and Firmus. Founded in 2023, Neysa employs 110 people across Mumbai, Bengaluru and Chennai. The company currently operates about 1200 GPUs and plans to scale beyond 20000 GPUs over time. Sanghi said, “We are seeing a demand that we are going to more than triple our capacity next year. Some of the conversations we are having are at a fairly advanced stage; if they go through, then we could see it sooner rather than later. We could see in the next 9 months.” Most of the new capital will fund large scale GPU clusters, networking and storage, with a smaller share allocated to research, development and software platforms for orchestration, observability and security. Neysa aims to more than triple its revenue next year and plans to expand beyond India over time.
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