Neysa Secures 600 Million Dollar Backing From Blackstone To Expand AI Infrastructure
Indian artificial intelligence infrastructure startup Neysa has secured major backing from U.S. private equity firm Blackstone as it scales domestic computing capacity in line with India’s push to strengthen homegrown AI capabilities.
Blackstone, alongside co investors including Teachers’ Venture Growth, TVS Capital, 360 ONE Asset and Nexus Venture Partners, has agreed to invest up to 600 million dollars in primary equity. The deal gives Blackstone a majority stake in the Mumbai headquartered startup. In addition, Neysa plans to raise another 600 million dollars in debt financing to expand its graphics processing unit capacity, a significant jump from the 50 million dollars it had previously raised.
Expanding GPU Capacity To Meet Rising Demand
The investment comes as global demand for AI computing continues to surge. As a result, specialised chips and data centre capacity remain in short supply.
New AI focused infrastructure providers, often called neo clouds, have emerged to bridge this gap. They offer dedicated GPU capacity and faster deployment than traditional hyperscalers, especially for enterprises and AI labs with specific regulatory, latency or customisation needs.
Neysa operates within this segment. It positions itself as a provider of customised, GPU first infrastructure for enterprises, government agencies and AI developers in India. Demand for local compute remains at an early stage, yet it is expanding rapidly.
Chief Executive Sharad Sanghi said many customers require hands on support and rapid response times. Therefore, Neysa offers round the clock service and tailored solutions that larger cloud providers may not match.
India’s Compute Ambitions Accelerate
Ganesh Mani, senior managing director at Blackstone Private Equity, said India currently has fewer than 60,000 GPUs deployed. However, he expects that figure to increase nearly 30 fold to more than 2 million in the coming years.
Several factors drive this expansion. Government agencies require domestic capacity, while regulated sectors such as financial services and healthcare must keep data within national borders. Moreover, AI developers are building models locally, and global AI laboratories seek infrastructure closer to Indian users to reduce latency.
Blackstone has already expanded its global footprint in data centres and AI infrastructure. It has backed platforms such as QTS, AirTrunk, CoreWeave and Firmus.
Scaling Operations And Revenue
Neysa currently operates about 1,200 GPUs and aims to scale beyond 20,000 over time as customer demand rises. Sanghi said the company expects to more than triple capacity next year. Some advanced customer discussions could accelerate that timeline further.
Most of the new capital will fund large scale GPU clusters, including compute, networking and storage infrastructure. Meanwhile, a smaller portion will support research and development and expansion of software platforms for orchestration, observability and security.
Founded in 2023, Neysa employs 110 people across Mumbai, Bengaluru and Chennai. The company aims to more than triple revenue next year and eventually expand beyond India as AI workloads continue to grow.