Neysa, an Indian AI infrastructure startup, has secured backing from U.S. private equity firm Blackstone as it scales domestic compute capacity. This move aligns with India’s push to build homegrown AI capabilities. Blackstone and co-investors, including Teachers’ Venture Growth, TVS Capital, 360 ONE Assets, and Nexus Venture Partners, have agreed to invest up to $600 million of primary equity in Neysa, giving Blackstone a majority stake.
The Mumbai-headquartered startup also plans to raise an additional $600 million in debt financing as it expands its GPU capacity. This represents a sharp increase from the $50 million it had raised previously. The deal arrives as global demand for AI computing surges, creating supply constraints for specialized chips and the data center capacity needed to train and run large models.
In response, newer AI-focused infrastructure providers, often called “neo-clouds,” have emerged to bridge that gap. They offer dedicated GPU capacity and faster deployment than traditional hyperscalers, which is particularly valuable for enterprises and AI labs with specific regulatory, latency, or customization requirements. Neysa operates in this emerging segment, positioning itself as a provider of customized, GPU-first infrastructure for enterprises, government agencies, and AI developers in India, where demand for local compute is at an early but rapidly expanding stage.
Neysa’s co-founder and CEO, Sharad Sanghi, highlighted the company’s focus on customer service, stating that many clients desire extensive hand-holding and round-the-clock support with quick response times, services that some larger hyperscalers do not provide.
Ganesh Mani, a senior managing director at Blackstone Private Equity, shared his firm’s estimation that India currently has fewer than 60,000 GPUs deployed. They expect this figure to scale nearly 30 times to more than two million in the coming years. This expansion is driven by government demand, enterprises in regulated sectors like financial services and healthcare that need to keep data local, and AI developers building models within India. Global AI labs, many of which count India among their largest user bases, are also increasingly looking to deploy computing capacity closer to users to reduce latency and meet data requirements.
This investment builds on Blackstone’s broader push into data center and AI infrastructure globally. The firm has previously backed large-scale data center platforms such as QTS and AirTrunk, as well as specialized AI infrastructure providers including CoreWeave in the U.S. and Firmus in Australia.
Neysa develops and operates GPU-based AI infrastructure that enables enterprises, researchers, and public sector clients to train, fine-tune, and deploy AI models locally. The startup currently has about 1,200 GPUs live and plans to sharply scale that capacity, targeting deployments of more than 20,000 GPUs over time as customer demand accelerates.
Sanghi stated that demand is such that the company expects to more than triple its capacity next year, with some advanced conversations potentially accelerating that timeline to within the next nine months. He explained that the bulk of the new capital will be used to deploy large-scale GPU clusters, including compute, networking and storage, while a smaller portion will go toward research and development and building out Neysa’s software platforms for orchestration, observability, and security.
Neysa aims to more than triple its revenue next year as demand for AI workloads accelerates, with ambitions to expand beyond India over time. Founded in 2023, the startup employs 110 people across offices in Mumbai, Bengaluru, and Chennai.