Blackstone to Take Majority Stake in Neysa with $1.2 Billion Backing
Neysa stated that the majority of the capital will be allocated to the development of extensive GPU clusters, encompassing compute, networking, and storage infrastructure.
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Amid increasing demand for local computing capacity in India, AI infrastructure startup Neysa has received a significant investment pledge led by U.S. private equity firm Blackstone.
Blackstone and a group of co-investors, including Teachers’ Venture Growth, TVS Capital, 360 ONE Asset, and Nexus Venture Partners, have agreed to invest up to $600 million in primary equity, giving Blackstone a majority stake in the Mumbai-based company.
Neysa also plans to raise an additional $600 million in debt to expand its graphics processing unit capacity. The combined package could total $1.2 billion, a sharp jump from the roughly $50 million the company had raised earlier.
The deal comes as AI adoption drives the demand for specialized chips and data centre infrastructure required to train and run large models. Supply constraints have opened space for newer infrastructure providers focused on dedicated GPU capacity and tailored deployments, particularly in markets where data localization and regulatory requirements are growing.
Neysa positions itself as a GPU-focused infrastructure provider for enterprises, government agencies and AI developers in India. The company currently operates about 1,200 GPUs and plans to expand that figure significantly, aiming to reach more than 20,000 GPUs over time.
Sharad Sanghi, co-founder and chief executive of Neysa, said customers in India often require high levels of support and local engagement. “A lot of customers want hand-holding, and a lot of them want round-the-clock support with a 15-minute response time and a couple-of-hour resolutions,” he said, adding that such services differentiate Neysa from larger hyperscale cloud providers.
Blackstone said it sees significant growth potential in India’s AI infrastructure market. Ganesh Mani, senior managing director at Blackstone Private Equity, estimated that India currently has fewer than 60,000 GPUs deployed and could see that number rise nearly 30 times to more than two million in the coming years.
According to Mani, the demand is being driven by government initiatives, enterprises in regulated sectors such as financial services and healthcare that must keep data within national borders, and AI developers building models locally. International AI labs are also looking to deploy compute capacity closer to large user bases in India to address latency and compliance requirements.
Blackstone has been expanding its exposure to data centres and AI infrastructure globally, with previous investments in large data centre operators and AI-focused infrastructure platforms in the United States and Australia.
Neysa said most of the new capital will go toward building large-scale GPU clusters, including compute, networking and storage infrastructure. A smaller portion will be directed toward research and development and the expansion of its software stack for orchestration, observability and security.
Founded in 2023, Neysa employs around 110 people across Mumbai, Bengaluru and Chennai. The company aims to more than triple its revenue next year and has indicated it may expand beyond India as demand for AI workloads continues to grow.
