Sarvam AI, a Bengaluru-based artificial intelligence startup, is reportedly approaching a valuation of around $1.6 billion as it works to close a major new funding round, according to sources familiar with the matter.
The company is said to be raising between $200 million and $300 million, with strong investor interest from global and domestic players. Potential participants include major technology and investment firms such as Nvidia, HCLTech, and venture capital groups, reflecting growing confidence in India’s AI ecosystem.
Founded in 2023 by Vivek Raghavan and Pratyush Kumar, Sarvam AI focuses on building large language models and AI systems tailored specifically for Indian languages and use cases. The startup has positioned itself at the center of India’s “sovereign AI” push, aiming to reduce dependence on global AI providers while addressing local linguistic and enterprise needs.
The sharp rise in valuation marks a significant jump from its earlier funding round in 2023, when the company raised about $41 million. If the current round is finalized at the expected valuation, it would represent a multi-fold increase and potentially become one of the largest funding deals for an Indian AI startup to date.
Sarvam AI has recently gained attention with the launch of its indigenous large language models, including 30B and 105B parameter systems, as well as its consumer-facing AI assistant “Indus.” These developments have strengthened its positioning as a key player in India’s emerging AI infrastructure landscape.
The funding momentum highlights a broader trend of increasing capital flowing into AI startups globally, with investors prioritising companies building foundational models and region-specific solutions. As competition intensifies, Sarvam AI’s ability to scale its technology and secure enterprise adoption will be critical in sustaining its rapid growth trajectory.
