US-based alternative asset manager Blackstone has finalised a structured investment agreement with Mumbai-headquartered AI cloud infrastructure startup Neysa, according to people familiar with the development. The transaction is expected to give Blackstone a significant foothold in the company, with a clear path to majority ownership over time.
Under the agreement, Blackstone is set to invest between $50 million and $75 million in the first tranche. The structure of the deal allows Blackstone to increase its stake to a controlling position if Neysa meets certain pre-agreed business and growth milestones, the sources said, requesting anonymity as the details are private.
The deal values Neysa at around $300 million, marking a sharp jump from its previous valuation. While the exact equity stake being acquired in the first phase has not been disclosed, the investment is being seen as one of the largest commitments to an India-based AI infrastructure company so far.
For Blackstone, the transaction represents a significant move into the fast-growing artificial intelligence and cloud infrastructure segment in India. The firm is globally known for its large-scale investments in real estate, private equity and infrastructure, and this deal signals a deeper push into digital infrastructure assets.
Deal Structure Details
Unlike conventional venture capital funding rounds, the investment has been structured as a milestone-linked transaction. This approach reflects the capital-intensive nature of building and scaling AI-focused cloud infrastructure, which often requires long-term and patient capital rather than short funding cycles.
People familiar with the talks said Blackstone’s backing could strengthen Neysa’s position when negotiating large enterprise contracts. The presence of a global institutional investor is expected to provide greater confidence to customers that require stable and scalable infrastructure partners.
Neysa operates in a space that demands heavy upfront spending on data centres, high-performance computing and specialised hardware. As a result, structured investments with clear performance-linked terms are increasingly being used by large investors to manage risk while supporting long-term growth.
The transaction is also notable because it opens the door for Blackstone to eventually take control of the company, a route that is less common in early-stage technology investments but more typical in infrastructure-focused deals.
Investor Background
Neysa’s existing investor base includes Z47, formerly known as Matrix Partners India, Nexus Venture Partners, Blume Ventures and Japanese technology group NTT. The company has raised about $50 million across two funding rounds prior to the Blackstone deal.
In its last funding round, Neysa was valued at around $120–130 million. The latest transaction therefore represents more than a doubling in valuation, underlining the strong investor appetite for AI infrastructure platforms amid rising demand for computing power.
Sources also said that SoftBank, led by Masayoshi Son, had earlier explored a potential growth-stage investment in Neysa. However, the Japanese investor is not part of the final transaction concluded with Blackstone.
The structured nature of the deal suggests a shift in how large pools of capital are approaching AI infrastructure in India, favouring models that combine elements of private equity and growth investing.
Broader Implications
The Blackstone-Neysa transaction comes at a time when artificial intelligence workloads are driving demand for specialised cloud infrastructure globally. Indian startups operating in this segment are increasingly attracting interest from global funds seeking exposure to long-term digital infrastructure themes.
For Neysa, the investment is expected to provide the financial strength required to scale operations, invest in advanced infrastructure and compete with larger global players. It also highlights the growing maturity of India’s AI ecosystem, where companies are now able to attract large, structured investments from global asset managers.
As AI adoption accelerates across industries, deals like this are likely to become more common, especially where technology and infrastructure intersect. The Blackstone-Neysa agreement may serve as a reference point for future large-ticket investments in India’s AI and cloud infrastructure space.
