Sarvam AI in Talks to Raise $300 Mn at $3 Bn Valuation: Report

Bengaluru-based AI startup Sarvam AI is in early discussions to raise $250 million to $300 million at a valuation of $3 billion, potentially doubling its valuation in four months, according to an ET report.

The proposed funding round could make Sarvam the most highly valued AI startup in India. The amount being raised and the valuation could change as discussions progress, the report added.

Sarvam AI is also reportedly in talks with large domestic enterprises and institutions as it seeks to keep a substantial shareholding with Indian entities. The discussions are at an early stage.

AIM reached out to Sarvam AI for confirmation. The company had not responded at the time of publication.

In June, Sarvam raised $234 million in the first close of its $300 million Series B round at a post-money valuation of $1.5 billion. HCLTech led the round with a $150 million investment, alongside Bessemer Venture Partners and existing investors Khosla Ventures and Peak XV Partners. NVIDIA and IndiGo Ventures participated in a $75 million extension.

Founded by Vivek Raghavan and Pratyush Kumar in 2023, Sarvam develops Indian-language AI models and applications for government agencies and businesses, with a focus on sectors such as banking and insurance. Its customers include Life Insurance Corporation of India, SBI Life, IDFC First Bank, Tata Capital and CRED.

The company is expanding its efforts across AI models, computing infrastructure and enterprise deployments. It plans to build a trillion-parameter AI model and establish an office in San Francisco to recruit researchers. Sarvam has also hired Sashikumar Sreedharan, the former head of Google Cloud India.

Sarvam’s Indus AI workspace has received approval for deployment across Maharashtra government departments for tasks such as drafting, translation and document analysis. Government data for the deployment will be hosted within India.