USD 1.5 Billion Valuation: AI Startup Secures Rs 1,427 Crore Investment From India's IT Major; Check Details

Indian equity benchmarks traded higher during Tuesday's session, with the benchmark Nifty 50 index gaining 65.75 points, or 0.28 per cent, to 23,919.65. The Nifty IT index also advanced 1.19 per cent to 28,403.25, supported by gains across major technology stocks. Amid the positive sentiment, HCL Technologies (HCLTech) share price jumps 3.14 per cent to Rs 1,154.50 after the company announced a strategic Rs 1,427 crore investment in Sarvam AI, one of India's leading sovereign artificial intelligence startups.

HCLTech To Invest Rs 1,427 Crore In Sarvam AI

HCLTech informed stock exchanges that it will invest Rs 1,427.25 crore in Axonwise Private Limited, which operates as Sarvam AI, through a cash transaction. The investment will give HCLTech a 10.46 per cent stake in the company through the acquisition of 41,421 equity shares, with the transaction expected to be completed within two weeks of signing. The company clarified that no regulatory or governmental approvals are required for the acquisition.

The investment forms part of HCLTech's broader strategy to strengthen its artificial intelligence capabilities and participate in the development of India's sovereign AI ecosystem.

Partnership Focused On Next-Generation AI Models

According to the filing, the investment will support Sarvam AI's research and development efforts, particularly in building next-generation frontier AI models focused on agentic AI, coding and cybersecurity applications. The funding will also help the company access large-scale computing infrastructure and expand deployments across multiple industry verticals.

HCLTech said the partnership will enable it to develop industry-specific and client-specific AI models for its global customer base while expanding Sarvam's multilingual AI capabilities across India and international markets. The collaboration is also expected to accelerate the adoption of sovereign AI solutions for governments, regulated industries and enterprises seeking secure and locally governed AI deployments.
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Sarvam AI Raises USD 234 Million At USD 1.5 Billion Valuation

In a parallel announcement, Sarvam AI revealed that it has raised USD 234 million in the first close of its USD 300 million Series B funding round at a post-money valuation of USD 1.5 billion. HCLTech is participating as the lead strategic investor with an investment of USD 150 million, alongside Bessemer Venture Partners, while existing investors Khosla Ventures and Peak XV Partners also continue to back the company.

The funding will be used to further strengthen Sarvam's AI research, expand infrastructure and accelerate commercialization of its AI products across enterprise, developer and government segments.

Sarvam AI Scaling Rapidly Across India

Founded in July 2023 and headquartered in Bengaluru, Sarvam AI is building what it describes as India's full-stack sovereign AI platform. The company develops AI models across language, speech, vision and document processing, all trained from scratch in India. Its focus sectors include banking, insurance, government technology and defence.

The company's growth has been rapid. Revenue increased from nil in FY24 to Rs 1.5 crore in FY25 and further to Rs 45.1 crore in FY26, according to unaudited financials. Sarvam AI already counts major enterprises such as SBI Life, LIC, IDFC, Tata Capital and CRED among its customers.

The startup's AI platforms are also witnessing significant adoption. Its conversational AI platform currently handles over 2 million interactions daily, while its inference platform processes around 10 million API calls per day. The company has also deployed multilingual voice AI solutions that have collected data from more than 17 million farmers and supported policy renewal campaigns reaching 45 million insurance customers.

Management Commentary

Commenting on the investment, C Vijayakumar, CEO and Managing Director of HCLTech, said the partnership represents an important step towards building a globally competitive AI ecosystem from India. He added that combining Sarvam's AI research capabilities with HCLTech's global reach would help create secure, scalable and responsible AI solutions for enterprises and governments worldwide.

Sarvam Co-Founder Pratyush Kumar stated that the company aims to build AI models that understand Indian languages, documents and user requirements at scale while making AI accessible and affordable for enterprises and governments.

About HCLTech

HCL Technologies Limited is one of India's leading global technology companies, providing IT and business services, engineering and R&D services, and software products. Founded in 1976 and listed since 2000, the company serves clients across more than 60 countries. As of March 31, 2025, HCLTech had 124 subsidiaries worldwide and derives a majority of its revenue from IT and Business Services, followed by Engineering and R&D Services and HCLSoftware offerings.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice.