Indian AI infrastructure startup Neysa has secured support from US private equity firm Blackstone to expand computing capacity in the country as the country pushes to build indigenous 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 in primary equity in Neysa, with Blackstone taking a majority stake, Blackstone and Neysa told TechCrunch. The Mumbai-headquartered startup plans to raise an additional $600 million in debt funding to expand its GPU capabilities, a significant increase from the $50 million it previously raised.
The deal comes as demand for AI computing soars globally, constraining the supply of specialized chips and data center capacity needed to train and run large-scale models. New AI-focused infrastructure providers, often referred to as “neoclouds,” have emerged to fill that gap by offering dedicated GPU capacity and faster deployment than traditional hyperscalers, especially 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. In India, the demand for local computing is still in its infancy but is growing rapidly.
“Many customers want direct interaction, and many want 24-hour support with a 15-minute response and some resolution. So these are the kinds of services that we provide that some hyperscalers don’t offer,” said Sharad Sanghi, co-founder and CEO of Neysa.
Ganesh Mani, senior managing director at Blackstone Private Equity, said the firm estimates that less than 60,000 GPUs are currently deployed in India, and expects that number to grow nearly 30 times to more than 2 million in the next few years.
That expansion is being driven by a combination of government demand, companies in regulated sectors like financial services and healthcare that need to keep data local, and AI developers building models within India, Mani told TechCrunch. Many global AI labs count India among their largest user bases and are increasingly looking to locate computing capacity closer to their users to reduce latency and meet data requirements.
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This investment also builds on Blackstone’s extensive commitment to global data center and AI infrastructure. The company has previously supported large data center platforms such as QTS and AirTrunk, as well as specialist AI infrastructure providers such as CoreWeave in the US and Firmus in Australia.
Neysa develops and operates GPU-based AI infrastructure that enables enterprises, researchers, and public sector customers to train, fine-tune, and deploy AI models locally. The company currently operates approximately 1,200 GPUs and plans to significantly expand its capacity as customer demand accelerates, with a goal of deploying more than 20,000 GPUs in the future.
“There is demand to more than triple production capacity next year,” Sanghi said. “Some of the conversations we’re having are at quite an advanced stage. If that happens, we could potentially find out sooner rather than later. We’ll know within the next nine months.”
Sanghi told TechCrunch that most of the new funding will be used to deploy large-scale GPU clusters that include compute, networking, and storage, with some of it going toward research and development and building Neysa’s software platform for orchestration, observability, and security.
Sanghi said Neisa aims to more than triple its revenue next year as demand for AI workloads accelerates, and has long-term ambitions to expand beyond India. Founded in 2023, the startup employs 110 people across its offices in Mumbai, Bengaluru and Chennai.
