HCLTech will lead this round, infusing USD 150 mn (approx. Rs 1,427 crore) as a strategic investor. The round also saw participation from existing investors, Khosla Ventures, Peak XV Partners, and Bessemer Venture Partners. The latest round is one of the biggest for an Indian AI startup and is indicative of the greater effort to build, train and deploy AI technologies within India.

What is Sarvam AI?

Sarvam AI, a “full-stack sovereign AI” company, was founded in August 2023 by AI researchers Dr Vivek Raghavan and Dr Pratyush Kumar. Sarvam isn’t just trying to build a chatbot or an AI application but building on the entire AI value chain, right from computing infrastructure to foundational AI models, enterprise software, and government-based products. The models are designed with training and data that include local use cases and Indian languages, enabling organisations and public sector units to build and leverage AI.

Why Is HCLTech Investing So Heavily in Sarvam AI?

For HCLTech, the investment is more than just a financial gamble.

Sarvam is viewed as a way to enhance India's position in the fast-evolving AI space as well as unlock new business opportunities for enterprises and governments.

Sarvam and HCLTech will use the former's AI research and the latter's global client network, engineering talent and software capabilities to develop AI products that organisations can deploy with greater control over their data and systems.

HCLTech CEO and MD C Vijayakumar said that the partnership aims to build a trusted and globally competitive AI ecosystem from India.

Why Is ‘Sovereign AI’ Such A Big Topic?

The funding comes at a time when many countries around the world are becoming nervous about a handful of international AI companies dominating them.

This discourse has gained heat especially recently as a few major AI players cut access to some of their more potent models in certain markets, thus showing the extent to which a few global players own the AI infrastructure.

It clearly shows the problem facing India, a market that has become one of the fastest-growing AI markets, where millions of users and businesses are jumping on AI, but very few domestic players are developing the most basic building blocks. One of these is Sarvam.

How Far Has Sarvam Come In Just Two Years?

The company has moved quickly since its launch.

Earlier this year, Sarvam released its 30-billion and 105-billion parameter foundation models, both trained in India. It has also developed AI systems across speech, vision, language and document processing.

According to the company, sectors such as banking, insurance, government services and defence are already using its technology.

Its conversational AI platform manages over 2 million interactions every day, while its inference platform processes around 10 million API calls daily. Sarvam also says its AI tools are helping digitise millions of handwritten and regional-language documents.

What Will The New Funding Be Used For?

The fresh capital will primarily be used to develop Sarvam’s next generation of AI models, particularly in areas such as:

• AI agents and autonomous systems
• Coding assistants
• Cybersecurity applications
• Large-scale computing infrastructure

The firm plans to further develop its relationships with enterprises and government organisations that seek localised AI solutions.

Who Are The Minds Behind Sarvam AI?

Sarvam’s founders bring deep expertise in India’s technology ecosystem.

Dr Vivek Raghavan has been instrumental in India's digital public infrastructure, including Aadhaar and language technology projects.

Meanwhile, Dr Pratyush Kumar is a former academic and AI researcher and co-founder of AI4Bharat, one of India's most influential open-source AI research groups on Indian languages.

Is Sarvam India's AI champion?

The latest funding round signals growing confidence that India can build globally relevant AI technology rather than simply consume products created elsewhere.

With a valuation of $1.5 billion, strong backing from HCLTech and a focus on Indian-language AI, Sarvam now finds itself at the centre of India’s push to create homegrown AI capabilities. The next challenge will be turning that technological promise into large-scale commercial success while competing against some of the world’s biggest AI companies.

(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)

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