Neysa Networks raises $1.2B for AI cloud
Indian AI cloud startup Neysa Networks has secured $1.2 billion in a mix of debt and equity, pushing its valuation to $1.4 billion. The financing was led by Blackstone, with participation from Teachers’ Venture Growth and TVS Capital. Neysa aims to deploy over 20,000 GPUs across India to expand the nation's AI and data center capacity.
- Neysa was founded in 2023 by Sharad Sanghi, who previously founded data center giant Netmagic and sold it to NTT, and Anindya Das, a former Netmagic and NTT executive. Silicon Valley entrepreneur B.V. Jagadeesh, who founded Exodus Communications, serves as the startup's chairman. - This funding round is part of a broader push to establish "sovereign AI" capabilities in India, reducing reliance on foreign cloud providers for critical infrastructure. The Indian government is supporting this through initiatives like the IndiaAI Mission, which aims to subsidize the cost of GPU access for startups, researchers, and SMEs. - The India AI infrastructure market is projected to grow significantly, with one report estimating it will reach $17 billion by 2027 and another projecting the AI-optimized data center market to reach $3.1 billion by 2030, up from $1.19 billion in 2025. - Investor Blackstone has been actively expanding its data center portfolio in India, with large-scale projects underway in Chennai, Mumbai, and Hyderabad, totaling a potential capacity of over 700 MW. - Prior to this large financing round, Neysa had raised a $20 million seed round in April 2024 and a $30 million Series A in October 2024, with participation from NTTVC, Z47 (formerly Matrix Partners India), and Nexus Venture Partners. - The company's product suite includes Neysa Velocis for AI deployment, Neysa Overwatch for network observability, and Neysa Aegis, which is designed to secure AI and machine learning pipelines from threats.
