India’s HCLTech has announced a major investment in Indian artificial intelligence startup Sarvam AI. The company will invest ₹14.27 billion (about $150.7 million) in cash to acquire a 10.5% stake in the startup as part of Sarvam AI’s Series B funding round.
The round has raised $234 million at first close and aims to reach $300 million in total. Following the funding round, Sarvam AI has been valued at approximately $1.5 billion, highlighting the growing importance of AI companies in India.
As part of the deal, HCLTech will acquire 41,421 equity shares in Sarvam AI and support the startup’s research and development efforts. This will help Sarvam AI develop advanced agentic AI models for software development and cybersecurity. HCLTech said the collaboration will strengthen its ability to create specialised language models and AI solutions for customers.
Sarvam AI said the funding will accelerate the development of sovereign AI technology tailored for governments and highly regulated industries that require greater control over technology and data. The funding round is led by Bessemer Venture Partners, with Khosla Ventures and Peak XV Partners continuing to back the company.
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The startup is already attracting major international technology firms. In 2024, Microsoft partnered with Sarvam AI to develop voice-based generative AI applications, although financial terms were not disclosed. This latest funding round signals growing confidence in India’s AI ecosystem.
