Neysa, which offers cloud-based AI solutions, has raised USD 20 million i.e. over Rs 166 crores in a seed-funding round led by Matrix Partners India, Nexus Venture Partners, and NTTVC. The Mumbai-based startup aims to use the funds to expand its Generative-AI-cloud platform and observability in the Indian and global markets. 

Neysa helps clients develop and manage their Generative AI projects cost-effectively and provides security for AI landscapes in the cloud and at the edge. The company’s integrated approach and industry-specific solutions aim to speed up the adoption of Generative AI in enterprises worldwide. Neysa plans to launch its services in the third quarter of 2024 and hopes to use this funding to drive innovation.

The startup’s CEO, Sharad Sanghi, aims to provide clients with demonstrable and tangible outcomes for their business, while CTO Anindya Das is building a future where AI integration is intuitive and seamless, fundamentally changing the way we interact with technology.

Avnish Bajaj, Managing Director of Matrix Partners India, said that there is a growing demand for expertise in AI-native cloud computing from enterprises worldwide, and the prospects for Neysa are exciting.

VCs have shown a growing interest in generative AI platforms, including ChatGPT, with increasing VC funding for early-stage firms in this space over the past few months. In December 2023, Sarvam AI raised USD 41 million in a Series A round led by Lightspeed, while Ema received USD 25 million, making it the second-largest funding for an early-stage startup operating in this field. Vodex raised USD 2 million in its seed round from Unicorn India Ventures and Pentathlon Ventures.

Earlier this year, Krutrim SI Designs, an AI startup founded by Bhavish Aggarwal, raised USD 50 million and became the fastest unicorn to achieve unicorn status. Unicorn status is a term used in the venture capital sector to describe a privately held company that has reached a valuation of at least USD 1 billion.