Sarvam AI in Talks to Raise $300 Mn at $3.5 Bn to $4 Bn Valuation
-
Khushi Jain
- October 28, 2026
Sarvam AI is reportedly in discussions with Nasdaq-listed IT services company Cognizant Technology Solutions to raise fresh capital at a valuation of $3.5 Bn to $4 Bn. The proposed funding round could mark a significant increase in the Bengaluru-based AI startup’s valuation.
According to an ET report citing sources, Sarvam AI is seeking around $300 Mn in fresh capital. The proposed valuation would be more than double the $1.5 Bn valuation it secured in its previous funding round.
Cognizant could acquire a small stake in Sarvam AI, although discussions are ongoing, the report said. The startup has also held talks with large domestic enterprises to anchor the funding round.
Inc42 has reached out to Sarvam AI and Cognizant for comments on the development. The story will be updated on receiving a response.
Sarvam AI Raised $234 Mn in Series B Funding
The latest discussions come four months after Sarvam AI raised $234 Mn in the first close of its $300 Mn Series B round in June 2026, becoming a unicorn.
HCLTech led the funding round with a $150 Mn investment. Bessemer Venture Partners also participated, alongside existing investors Khosla Ventures and Peak XV Partners.
If Cognizant invests in Sarvam AI, it would become the second IT services major on the startup’s cap table after HCLTech.
The potential investment comes as IT services companies look to strengthen their AI capabilities amid advances in generative AI and agentic AI. These technologies are raising questions about traditional outsourcing models, as AI agents increasingly automate tasks across software development, application maintenance and back-office operations.
Cognizant has indicated that investments and acquisitions could support its transition towards a business model centred on platforms and customer outcomes.
During an earnings call in April, CEO Ravi Kumar said Cognizant saw acquisition opportunities aligned with its ambition to become an AI builder. The company is focusing on platforms and delivering outcomes rather than billing clients based on effort.
Sarvam AI Expands Its Enterprise Business
Founded in 2023 by Pratyush Kumar and Vivek Raghavan, Sarvam AI develops foundational AI models, computing infrastructure and enterprise applications.
Its offerings target businesses and government agencies seeking AI tools tailored to Indian languages, data-security requirements and local use cases.
The startup has released several models in recent months, including Sarvam Vision 2.1, a vision-language model designed to process documents and recognise text in Indian languages, and Saaras V4, its speech-to-text model.
In October, Sarvam AI launched Bulbul V4 Flash, a text-to-speech model designed to generate natural speech across Indian languages.
The company is also expanding its enterprise customer base. According to ET, its customers include Life Insurance Corporation of India, SBI Life, IDFC First Bank, Tata Capital and CRED.
Sarvam AI recently appointed former Google Cloud India head Sashikumar Sreedharan as its president and chief business officer.
Earlier this week, the startup announced a memorandum of understanding with Headquarters Integrated Defence Staff under the defence ministry. The agreement aims to establish a framework for AI projects across the Indian Army, Navy and Air Force.
The reported funding discussions with Cognizant come as Sarvam AI expands its enterprise presence and develops AI models and applications for Indian businesses and government organisations.
FAQs
1. How much funding is Sarvam AI reportedly seeking?
Sarvam AI is reportedly seeking around $300 Mn in fresh capital.
2. What is the proposed valuation of Sarvam AI?
The startup is reportedly in discussions to raise funds at a valuation of $3.5 Bn to $4 Bn.
3. Which IT services company is reportedly considering an investment in Sarvam AI?
Nasdaq-listed Cognizant Technology Solutions is reportedly in discussions to acquire a small stake in the startup.
4. Who led Sarvam AI’s Series B funding round in June 2026?
HCLTech led the round with a $150 Mn investment. Bessemer Venture Partners, Khosla Ventures and Peak XV Partners also participated.
5. What AI models has Sarvam AI launched?
Its models include Sarvam Vision 2.1 for document processing and text recognition, Saaras V4 for speech-to-text, and Bulbul V4 Flash for text-to-speech.
