Blackstone and SoftBank in Talks to Invest in Indian AI Cloud Startup Neysa
- ByStartupStory | November 18, 2025
Global investment powerhouses Blackstone Inc. and SoftBank Group Corp. are reportedly in early-stage discussions to acquire stakes in Neysa Networks, an emerging Indian startup specializing in cloud infrastructure for artificial intelligence (AI) computing. The potential deal is seen as a strategic move to capitalize on the rapid growth of AI technology and India’s evolving digital infrastructure landscape.
Founded in 2023 by Sharad Sanghi and Anindya Das, Neysa Networks offers cloud computing services designed specifically to support AI model training and deployment on demand. The company caters to the increasing need for scalable, efficient, and reliable cloud infrastructure—one of the foundational enablers for AI advancements across sectors ranging from fintech to healthcare.
According to sources familiar with the talks, Blackstone is considering taking a majority stake in Neysa, while SoftBank is negotiating a minority position. This prospective partnership would mark SoftBank’s first significant new investment in India in over three years, signaling its renewed interest in the region’s tech ecosystem. For Blackstone, the deal aligns perfectly with its expanding portfolio of digital infrastructure investments in India, complementing its recent stakes in data center operators like Lumina CloudInfra and its acquisition of Australian cloud firm AirTrunk, which plans to expand its presence in India.
The valuation for Neysa is expected to be under $300 million. While this reflects a strong vote of confidence in the startup’s potential, the discussions highlight that additional capital commitments would be necessary to fund Neysa’s aggressive growth and infrastructure expansion plans. The startup has already raised about $50 million from investors, including Z47 (formerly Matrix Partners India) and Nexus Venture Partners.
This investment interest comes at a time when AI and cloud infrastructure markets are booming globally. Increasing demand for data centers capable of supporting AI workloads has prompted significant capital influxes worldwide. India is rapidly emerging as a key player in this sector, with its AI data center capacity projected to grow from the existing 1.2 gigawatts (GW) to nearly 9 GW by 2032. This growth is driven by the adoption of AI technologies across industries and government initiatives boosting digital infrastructure.
For Neysa, the involvement of Blackstone and SoftBank could be transformative, providing not only capital but also strategic guidance and access to a global network that could accelerate product development, scale operations, and expand market reach. This could position Neysa as a formidable competitor in both domestic and international cloud computing markets focused on AI.
Industry experts note that this development also reflects a broader trend wherein private equity and venture capital investors are increasingly focusing on infrastructure assets critical to the AI economy, seeing them as long-term growth plays beyond traditional software or platform investments.
The deal, while promising, remains in preliminary stages, with no final decisions announced. Other potential investors could join the funding round, underscoring the heightened interest in the Indian AI cloud infrastructure space.
If concluded, this investment would signify a pivotal milestone for India’s AI ecosystem, drawing global capital towards homegrown innovation and infrastructure capabilities foundational for the country’s digital future.
Follow Startup Story
Related Posts
