Mumbai-based artificial intelligence (AI) cloud system provider Neysa said on Tuesday that it has raised $30 million in a Series A funding round.

The fundraising, co-led by existing investors NTTVC, Z47 (Matrix Partners India) and Nexus Venture Partners, comes six months after the AI cloud and platform-as-a-service startup secured $20 million in Seed funding, and has helped strengthen investors' confidence in the company.

The fund will be used to bolster Neysa's AI infrastructure, fuel research and development and help the firm prepare for the launch of its integrated Gen AI Acceleration Cloud Service, the company said.

The response from investors has helped focus attention on the high demand of scalable Al-native solutions and the startups' ability to meet various industry needs.

The firm has showed significant advancements in technology and market presence since its seed funding round in April this year. It was in just three months after the seed funding that the firm launched its flagship platform Neysa Velocis, thus facilitating on-demand access to a high performance computing infrastructure. By gaining popularity across the country, it has received orders from AI-first digital natives, media and entertainment companies, service providers, software vendors and the public sector.

Demand for scalable AI solutions is going up and by 2027, it will triple to $22 billion. In India, over 60 percent of companies depend up on AI applications. Though the country has world's second largest AI talent pool, access to 'purpose-built AI-native infrastructure' is still a challenge and Neysa is working to solve this issue through its 'localized, scalable AI infrastructure,' the company said.

"This investment brings us closer to our vision of democratizing access to Gen AI and AI solutions for organizations across the world," Co-Founder and CEO of Neysa, Sharad Sanghi, said in a statement.

"We're thrilled with the progress we've made since our seed round. The general availability of Neysa Velocis and the onboarding of customers across key sectors validate our approach. By offering purpose-built, cost- effective AI-native solutions, we empower organizations to innovate confidently in a world that is being reshaped by AI."

Meanwhile, investors expressed excitement over their partnership with Neysa.

"We are excited to co-lead the Series A round and deepen our partnership with Neysa", said Vab Goel, Founding Partner at NTTVC and Board Member of NTT DATA, Inc, while Avnish Bajaj, Founder and Managing Director, Z47 added that they were "privileged to support the company's journey in empowering organizations to harness the full potential of AI with their world class AI technology platform and capabilities."

Neysa was co-founded by Sanghi and NTT tech leader Anindya Das. Sanghi founded India's leading data center company Netmagic in 1998 and managed it for 27 years before founding Neysa with Das in 2023.