Sarvam AI is reportedly close to securing a major funding round that could push its valuation to nearly $1.5 billion, making it one of India’s fastest-growing AI companies.
According to reports, HCLTech is expected to lead the upcoming $300 million funding round with an investment of approximately $150 million.
The funding round is also expected to include participation from Bessemer Venture Partners, which is reportedly investing around $50 million. The remaining capital is likely to come from investors including NVIDIA, Prosperity7, Activate Glade Brook, and several existing investors.
Sarvam AI is already backed by leading global investors such as Khosla Ventures, Lightspeed, and Peak XV Partners, many of whom are expected to participate in the new round on a pro-rata basis.
The deal is expected to value the company at around $1.5 billion post-money — nearly seven times higher than its valuation in 2023. Reports suggest the funding round could close within the next few weeks.
Earlier reports had indicated that Sarvam AI was in talks with multiple investors including HCLTech, NVIDIA, and Accel to raise fresh capital in what is expected to become one of the largest funding rounds for an Indian AI startup in recent years.
Founded as a foundational AI models company, Sarvam AI has rapidly emerged as a key player in India’s growing artificial intelligence ecosystem. The startup is focused on building indigenous AI models designed specifically for Indian languages and use cases.
The company has gained significant attention through its work on large language models such as Sarvam-105B, which uses Mixture-of-Experts (MoE) architecture to improve efficiency and reduce operational costs.
Sarvam AI’s growth also aligns closely with India’s broader sovereign AI ambitions under the IndiaAI Mission. The mission recently enabled the startup to access high-performance NVIDIA H100 GPUs through Yotta Data Services, helping accelerate the development of advanced AI infrastructure within the country.
One of the startup’s key goals is to bridge linguistic gaps by creating AI systems capable of supporting all 22 official Indian languages, an area where global AI platforms still face limitations.
Industry analysts believe the investment reflects growing confidence in India’s AI ecosystem and signals a shift toward large-scale investments in foundational AI infrastructure, sovereign technology, and generative AI platforms.
The funding momentum also comes amid a strong year for Indian AI startups. Reports suggest that AI startups in India collectively raised nearly $3.94 billion during the first quarter of 2026, highlighting rising investor interest in the sector.
Vishal Gawai
Verified Journalist
Vishal Gawai is the founder of TheIndiaBizz, a media and information platform in India that offers in-depth coverage of the country’s startup ecosystem.
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