India's Neysa Bags $30M to Compete with Global AI Hyperscalers

Even though India isn’t at the forefront of the global AI innovation battle, demand for AI in the country is growing as businesses seek efficiencies and tech companies promote AI developments as a cure-all. The South Asian nation is projected to have an AI market touching $17 billion by 2027, according to a joint report by the IT industry body Nasscom and consulting firm BCG.

Neysa, an Indian startup led by seasoned tech entrepreneur Sharad Sanghi, aims to leverage this growth opportunity by offering its AI solutions to local and multinational businesses in the country.

India's Growing AI Market

India's AI market is poised for substantial growth, driven by the increasing adoption of AI technologies across various sectors. The government's initiatives and the availability of skilled talent are also contributing factors. With the projected market size reaching $17 billion by 2027, Neysa is strategically positioned to capitalize on this burgeoning opportunity.

Neysa's AI Solutions for Businesses

Neysa provides a comprehensive suite of AI and machine learning solutions tailored to meet the specific needs of businesses. Its offerings encompass infrastructure, platform as a service, and dedicated machine learning operations. This comprehensive approach enables businesses to leverage the power of AI effectively.

Infrastructure and Platform as a Service

Neysa provides on-demand access to computing infrastructure and platform as a service, empowering businesses to scale their AI operations seamlessly. Its flagship platform, Velocis, facilitates efficient utilization of resources, while its infrastructure and platform as a service solutions cater to diverse business requirements.

Founder's Background and Vision

Sharad Sanghi, the founder of Neysa, brings extensive experience from his previous venture, Netmagic, a data center provider acquired by NTT Data in 2016. His vision for Neysa is to provide a comprehensive range of AI services, including infrastructure, platform, and inference as a service, catering to the needs of both developers and enterprises.

Product Lineup and Expansion Plans

Neysa's initial focus was on providing infrastructure services, but it has expanded its product lineup to include a developer platform and inference-as-a-service. The startup is also actively developing observability tools to enhance infrastructure management and secure AI workloads.

Competition with Global Hyperscalers

Neysa is directly competing with global AI hyperscalers, such as AWS, Google Cloud Platform, and Microsoft Azure. The startup aims to differentiate itself by offering flexibility, open-source platforms, and a tailored consultation service.

Differentiation through Flexibility and Open Source

Neysa distinguishes itself by offering both public cloud and private cluster options, providing clients with flexibility. Its open-source platforms ensure that customers are not locked into proprietary solutions, enabling them to maintain control over their AI infrastructure.

Consultation Service for Local Businesses

Neysa's consultation service plays a crucial role in attracting local businesses, which often struggle to determine the right infrastructure requirements. The startup's team provides expert guidance, ensuring that businesses invest in the appropriate AI infrastructure.

Series A Funding and Future Plans

Neysa has secured $30 million in a Series A funding round, led by existing investors NTTVC, Z47, and Nexus Venture Partners. This funding will be utilized to enhance Neysa's infrastructure, accelerate R&D, and expand its go-to-market strategy. The funds will also support the launch of Neysa's integrated Gen AI acceleration cloud service.

Customer Base and Expansion Strategy

Neysa currently has 12 paying customers and is running six large proof-of-concepts. The startup's customer base includes research institutes, AI-native startups, and enterprise customers in the banking, manufacturing, and media sectors. The company is focused on growing its customer base in India and expanding into global markets.

Global Market Entry and Future Funding

Neysa plans to expand into global markets with its next round of funding, which is expected to close within six to nine months. The startup aims to raise a significant amount of capital, exceeding its previous funding rounds. Neysa also plans to raise debt to meet the growing demand for GPU and other infrastructure resources.

Summary

• Neysa is an Indian AI startup providing solutions to businesses in the country.
• It provides infrastructure, platform as a service, and machine learning operations.
• The company differentiates itself by offering flexibility, open-source platforms, and a tailored consultation service.
• Neysa has raised $30 million in Series A funding, which will be used to expand its offerings, R&D, and customer base.
• The startup plans to enter global markets in the future and raise additional capital to support its growth.