As the demand for artificial intelligence (AI) surges across India, the country is poised to make its mark in the global AI landscape. Projected to reach a staggering $17 billion by 2027, according to a joint report from Nasscom and BCG, the Indian AI market is drawing the attention of both local and international players. Among these, Neysa—a Mumbai-based startup founded by tech veteran Sharad Sanghi—aims to seize this burgeoning opportunity by delivering innovative AI solutions tailored for both domestic and multinational enterprises.
A Visionary Entrepreneur’s Journey
Sharad Sanghi, who boasts an impressive 27-year tenure at data center provider Netmagic, which was acquired by Japan’s NTT Data in 2016, has a clear vision for Neysa. After resigning from his role as managing director and CEO of Netmagic in June 2023, he turned his attention to the rapidly evolving domains of cloud infrastructure and AI. “I started Neysa to provide infrastructure as a service, platform as a service, inference as a service, and comprehensive services around machine learning,” he explained in an interview.
Initially focused on infrastructure, Neysa recently launched its flagship platform, Velocis, in July, providing on-demand access to computing resources. However, the startup doesn’t plan to stop there. Sanghi revealed plans to introduce a developer platform and inference-as-a-service by year-end, along with enhanced observability tools for better infrastructure management and AI workload security.
Competing with the Giants
Neysa aims to compete with established cloud giants like AWS, Google Cloud Platform, and Microsoft Azure, as well as newer contenders like CoreWeave and Lambda Labs. What sets Neysa apart? Sanghi points to the startup’s flexibility. “We offer both public cloud and private clusters, and all our platforms are built on open-source technologies, ensuring there’s no vendor lock-in for our clients,” he emphasized.
Neysa’s consulting services further position it as an appealing option for local businesses. Many companies struggle to identify their actual infrastructure needs, often overestimating their requirements. “Clients frequently approach us asking for numerous GPUs, but upon assessment, we find they often need only a fraction of what they requested,” Sanghi noted.
Funding to Fuel Growth
Recently, Neysa successfully raised $30 million in an all-equity Series A funding round, co-led by existing investors NTTVC, Z47 (formerly Matrix Partners India), and Nexus Venture Partners. This follows a $20 million seed round earlier in the year. The newly acquired funds will not only enhance Neysa’s infrastructure and R&D efforts but also bolster its go-to-market strategies and pave the way for the launch of its integrated Gen AI acceleration cloud service.
With a current headcount of 55, Neysa plans to expand its team, adding engineers and sales personnel to accelerate growth. Presently, the startup serves around 12 paying customers and is executing six large proof-of-concept projects. Interestingly, 70% of its customer base has opted for private clusters, while the remaining 30% utilizes public cloud services.
While Sanghi refrained from disclosing specific customer names, he mentioned that Neysa serves three primary categories: research institutions, AI-native startups, and enterprise clients, particularly in the banking, manufacturing, and media sectors.
Looking to the Future
Currently, Neysa’s clientele is primarily based in India; however, Sanghi revealed ambitious plans for international expansion with the next funding round—talks for which are already underway and expected to conclude in the next six to nine months. Although he did not disclose the specific amount Neysa aims to raise, he hinted it would be “an order of magnitude more than what we’ve currently raised.” Additionally, the startup is considering raising debt to meet growing demands for GPUs and other critical infrastructure.
In a landscape increasingly dominated by AI, Neysa is strategically positioned to leverage India’s growing market, offering innovative solutions that cater to the specific needs of businesses. As the AI race heats up, keep an eye on Neysa as it seeks to carve out its niche on the global stage.
