USD 1.5 Billion Valuation: IT Major Completes Rs 1,427 Crore Investment in Sarvam AI, Secures 10.46 Per Cent Stake

Gift Nifty fell over 100 points on Friday morning, signalling subdued sentiment in global markets, although Indian equity markets remain closed today on account of Muharram. On Friday, shares of HCL Technologies share price ended 1.19 per cent lower at Rs 1,100.70, amid weakness in the broader IT sector.

HCLTech Completes Rs 1,427 Crore Investment

HCL Technologies Limited has completed its Rs 1,427.25 crore investment in Axonwise Private Limited, the company operating as Sarvam AI, by subscribing to 41,421 Series B2 Compulsorily Convertible Preference Shares (CCPS). The investment, which was first announced earlier this month, was completed on June 25, 2026, giving HCLTech a 10.46 per cent stake in the AI startup.

The Series B2 CCPS allotted to HCLTech will convert into equity shares at a later stage in accordance with the terms of the issuance, translating the company's current preference shareholding into equity ownership over time.

Strengthens AI Strategy

With the completion of the transaction, HCLTech has formally concluded its minority investment in Sarvam AI through a structured preference share subscription route. The investment reflects the company's strategic focus on expanding its capabilities in artificial intelligence and generative AI, while strengthening its presence in India's rapidly evolving AI ecosystem.

Sarvam AI is among India's emerging AI companies focused on building foundational AI models and large language models tailored for Indian languages and enterprise applications. The partnership is expected to complement HCLTech's AI offerings across enterprise transformation, automation and digital engineering.

Strategic Bet on India's AI Ecosystem

Artificial intelligence continues to be one of the fastest-growing segments in the global technology industry, with enterprises increasingly adopting AI-driven solutions across software development, customer engagement, cloud computing and business operations.

Through its investment in Sarvam AI, HCLTech aims to participate in the long-term growth of India's AI ecosystem while leveraging next-generation AI capabilities to create differentiated solutions for global clients.
 

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.
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About HCL Technologies

HCL Technologies Ltd is one of India's leading global technology companies, providing digital transformation, engineering, cloud, artificial intelligence and software services across more than 60 countries. The company operates through IT and Business Services, Engineering and R&D Services, and HCLSoftware, serving clients across multiple industries worldwide.

As of March 31, 2025, HCLTech had 124 subsidiaries and continues to invest in emerging technologies, including artificial intelligence, cloud computing, cybersecurity and digital engineering, to strengthen its long-term growth strategy. According to the March 2026 shareholding pattern, Foreign Institutional Investors (FIIs) held 15.51 per cent of the company, while Domestic Institutional Investors (DIIs) increased their stake to 18.95 per cent from 18.40 per cent in the previous quarter.

What are your views on HCLTech's strategic investment in Sarvam AI? Share your thoughts in the comments below.
Disclaimer: The article is for informational purposes only and not investment advice.