Blackstone to back Mumbai-based AI cloud infrastructure startup Neysa with $1.2 billion capital infusion, taking it to the unicorn league

Private equity funds affiliated with Blackstone and its co-investors have made a definitive agreement facilitating a $1.2 billion capital raise for Mumbai-headquartered AI acceleration cloud platform Neysa, marking one of the largest infrastructure-focused bets in India’s fast-evolving artificial intelligence ecosystem.

According to an official statement, Blackstone and its partners have committed up to $600 million in equity capital.

On the basis of this infusion, Neysa intends to secure an additional $600 million in debt financing, subject to documentation.

“Blackstone and co-investors have provided equity capital of up to $600 million, on the basis of which Neysa intends to secure an additional $600 million of debt financing, subject to documentation,” the company said.

Other equity investors participating in the round include Teachers' Venture Growth, TVS Capital, 360 ONE Assets, and Nexus Venture Partners.

Unicorn status in sight?

While the company has not publicly disclosed its post-money valuation, market participants tracking India’s AI funding wave suggest that a transaction of this magnitude could potentially propel Neysa into the unicorn club, depending on the final structure of the equity and debt components.

As of now, the company has not officially confirmed unicorn status.

Founded in 2023, Neysa operates as a GenAI-focused acceleration cloud platform delivering mission-critical, GPU-based infrastructure to enterprises and government bodies.

The company aims to deploy more than 20,000 GPUs across India, addressing increasing demand for domestic compute capacity as generative AI adoption scales across financial services, healthcare, technology, and public services.

Blackstone will partner with Neysa’s Co-Founder and CEO, Sharad Sanghi, to accelerate the company’s expansion and scale its infrastructure footprint nationwide.

“Over the past two decades, we have been committed to building businesses that build India, and this investment brings that to life.

It reinforces Blackstone’s focus on backing the essential ‘picks and shovels’ of AI globally, including in India, a key market for Blackstone,” said Amit Dixit, Head of Asia Private Equity at Blackstone.

Sanghi emphasised the strategic nature of the funding.

“India’s AI ambition requires production-grade infrastructure built and operated at scale.

Neysa is focused on delivering the execution layer of sovereign compute, as well as AI research enablement and adoption, in alignment with the goals of the IndiaAI Mission,” he said.

As enterprises increasingly seek data residency, performance certainty, and cost-effective GPU access, domestic AI cloud providers are emerging as strategic enablers.

Advisors to the transaction included KPMG as financial advisor to Blackstone, while Talwar Thakore & Associates (TT&A) advised Neysa. Trilegal and Gibson, Dunn & Crutcher acted as legal advisors to Blackstone.

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