Mumbai-based AI infrastructure startup Neysa has attracted a major investment led by US private equity firm Blackstone, as it moves to rapidly expand GPU capacity in India amid rising demand for domestic AI computing.
Blackstone, along with co-investors Teachers’ Venture Growth, TVS Capital, 360 ONE Assets and Nexus Venture Partners, will invest up to $600 million as primary equity, as per the company. The funding will give Blackstone a majority stake in the company.
Neysa is also planning to raise another $600 million through debt, the company added. The combined fundraising marks a sharp step-up for the company, which had raised $50 million earlier.
A bet on ‘neo-cloud’ infrastructure
This has created room for a new category of AI infrastructure providers, often called neo-clouds, that offer dedicated GPU capacity and faster rollout compared to hyperscalers. These platforms are particularly relevant for enterprises and AI labs that need local compute for reasons such as regulation, latency and customisation.
Neysa operates in this space, positioning itself as a GPU-first infrastructure provider for enterprises, government bodies, and AI developers in India, where demand for local compute remains nascent but is scaling quickly.
Focus on support and enterprise needs
Neysa co-founder and chief executive Sharad Sanghi said that the company is seeing strong demand from customers that want hands-on support, including rapid response and resolution times, an area where large hyperscalers may not always offer the same level of attention.
Blackstone sees steep GPU growth in India
Ganesh Mani, senior managing director at Blackstone Private Equity, said that India currently has fewer than 60,000 GPUs deployed, but the figure could rise nearly 30-fold to more than two million over the coming years.
He attributed the expected growth to demand from the government, enterprises in regulated sectors such as financial services and healthcare that require local data storage, and developers building AI models within India. Global AI labs, many of which count India among their biggest user markets, are increasingly exploring compute deployments closer to Indian users to reduce latency and comply with data requirements.
From 1,200 GPUs to a 20,000+ target
Neysa currently operates around 1,200 GPUs, and plans to scale significantly, with a long-term goal of deploying over 20,000 GPUs, as per the company.
Sanghi said that the company expects to more than triple capacity next year, and that ongoing customer discussions could accelerate timelines, potentially leading to faster deployment over the next nine months.
Where the capital will be deployed
The company plans to use most of the new capital to build out large GPU clusters, including investments in compute, networking and storage. A smaller share will be directed toward R&D and expanding Neysa’s software layer for orchestration, observability and security.
Neysa is aiming to more than triple its revenue next year, and intends to explore expansion beyond India over time. Founded in 2023, the company has 110 employees and operates across Mumbai, Bengaluru and Chennai.