Hajra Naz
Mumbai – Neysa, a Mumbai-based startup that builds GPU-first AI infrastructure, has secured a financing package of up to $1.2 billion led by U.S. private equity firm Blackstone. The deal pairs up to $600 million in primary equity, which gives Blackstone a majority stake, with plans to raise about $600 million in debt, a substantial increase from the company’s prior $50 million of funding.
Co-investors in the equity round include Teachers’ Venture Growth, TVS Capital, 360 ONE Asset, and Nexus Venture Partners. Neysa says the fresh capital will go mainly toward deploying large-scale GPU clusters, along with associated networking, storage, and software. At the same time, a smaller portion will be directed to research and development for orchestration, observability, and security tools.
Neysa currently operates roughly 1,200 GPUs and has laid out an ambitious expansion plan, targeting more than 20,000 GPUs as customer demand grows. “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,” said Neysa co-founder and CEO Sharad Sanghi. The company expects to more than triple revenue next year if current discussions convert into contracts.
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According to Blackstone, there is a significant expansion opportunity to be had in the AI market for India.
In this case, Blackstone Private Equity Senior Managing Director Ganesh Mani stated that Aside from the fact that India is believed to currently be home to less than 60,000 deployed GPUs, that number is expected to increase considerably due to the government, enterprises in regulated industries such as financial services and healthcare, and AI developers advocating for onshore compute to satisfy latency and data-sovereignty.
Financial backing follows a pattern; new providers of AI-focused infrastructure are emerging, referred to as “neo-clouds”, that offer a parallel value proposition for GPUs and manual service offerings that are to be circumvented by prominent public clouds. Local GPU resources may be a necessity for clients who have stringent regulatory or bespoke demands. Established in 2023, Neysa has a total of about 110 employees in Mumbai, Bengaluru, and Chennai.
Neysa wants to position itself as a leading homegrown choice for businesses, government agencies, and research teams in India that need to train, refine, and run AI models locally. With Blackstone’s backing and additional debt financing, the company plans to speed up its expansion and scale its infrastructure across the country.
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For the investor, the move builds on Blackstone’s recent pushes into data-center and AI infrastructure globally. The firm has previously invested in large data-centre platforms and specialist AI infrastructure providers overseas, signaling an ongoing bet on the physical backbone that supports compute-intensive AI work.
