AI acceleration cloud system provider Neysa announced on 22 October that it had raised $30 million in a Series A funding round, co-led by existing investors NTTVC, Z47 (formerly Matrix Partners India), and Nexus Venture Partners. This comes less than a year after Neysa’s $20 million seed round.

Neysa is the second venture of Sharad Sanghi, the former chairman of NTT India’s global data centres and cloud infrastructure business. Sanghi co-founded Neysa alongside CTO Anindya Das and BV Jagadeesh, the chairman. Sanghi also founded Netmagic Solutions, a data centre solutions provider, which was later acquired by NTT.

The deployment of its own cloud infrastructure, which went live in July, and the first success and traction of its Neysa Velocis orchestration platform prompted the most recent fundraising round, according to Sanghi, co-founder and CEO.

An orchestration layer refers to the ability to schedule and allocate GPU resources for AI workloads. Velocis, as a self-service platform, allows customers to deploy AI workloads with the flexibility to schedule and allocate GPUs, choose virtualized or fractional GPUs, or operate in a “containerized environment,” without the need to pay for the entire GPU capacity.

The platform has paying customers from various sectors, including research institutes, AI startups, and enterprises, particularly in the banking and insurance industries. Neysa’s customer base spans AI-first digital natives, media and entertainment companies, service providers, software vendors, and the public sector.

Neysa has deployed “more than double down on the infrastructure” with the help of the newly generated funds.

Sanghi added, “We’re also using some of the funds for R&D for enhancing our platforms that we’ve started and for go-to-market. We have to build our sales team, both direct and indirect sales too. So that is the reason for this fund raise.”

By the next year, he anticipates the startup will break even and earn a profit.

Vab Goel, founding partner at NTTVC and board member of NTT DATA, Inc, said, “The team’s innovation and commitment to accelerating Gen AI solutions are creating a significant impact in the region’s tech ecosystem. We have seen first hand how Sharad built India’s largest datacenter company from inception. His experience and track record are a critical differentiator in building and scaling the next-generation Gen AI cloud provider.”

Later this year, Neysa intends to create a developer platform where developers may carry out all machine learning tasks online, following the debut of Velocis and its cloud services. 

Neysa will provide inferences as a service in its third phase. The startup from Mumbai is also developing an observability platform.

Sales of GPUs, platforms, and infrastructure have increased significantly. Sanghi claims that Neysa has partnered with Supermicro, HP, and Dell to source GPUs. Neysa recently hired several seasoned tech professionals to bolster its leadership team. 

The company, which now employs 55 people, wants to grow by adding more people with machine learning and infrastructure scaling experience. By the end of FY25, the startup should have almost 100 employees.

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