Sarvam AI in talks to raise up to $300 million at $3 billion valuation

​Proposed funding could double Sarvam’s valuation to $3 billion, making it India’s most valuable AI startup.India’s own artificial intelligence (AI) startup Sarvam AI is reportedly in talks to raise $250–300 million in fresh funding at a valuation of $3 billion, nearly double its valuation four months ago, The Economic Times reported.The AI startup raised more than $300 million in June at a valuation of $1.5 billion.

If the proposed funding round materialises at a $3 billion valuation, Sarvam would become India’s most valuable AI startup.Sarvam’s existing investors include HCLTech, which led its previous funding round, and IndiGo Ventures, the corporate venture capital arm of IndiGo’s parent company, InterGlobe Aviation.HCLTech committed $150 million to Sarvam’s June funding round, which also saw participation from Bessemer Venture Partners and existing investors Peak XV Partners and Khosla Ventures.According to earlier ET reports, Nvidia, Glade Brook Capital, Gaja Capital and IndiGo Ventures were among the investors in the subsequent $75 million extension round.Founded in 2023, Sarvam AI develops Indian-language AI models and applications for government agencies and enterprises, particularly in the banking and insurance sectors.

Its clients include Life Insurance Corporation of India (LIC), SBI Life, IDFC First Bank, Tata Capital and Cred.The startup was also among the first companies selected under the IndiaAI Mission to develop indigenous foundational AI models.According to ET’s June report, Sarvam’s founders said the company planned to utilise the funding to acquire GPUs and other computing infrastructure, train new AI models and deploy them for customers.As global AI giants expand their operations and infrastructure costs continue to rise, homegrown AI startups are becoming increasingly important to India’s efforts to enhance its AI capabilities and reduce dependence on foreign technology providers.