Sarvam AI has secured $234 million in new funding as the Indian startup looks to expand its AI models and infrastructure. The investment values the company at $1.5 billion and comes less than three years after its launch.

HCLTech led the round with a $150 million investment. Existing investors Bessemer Venture Partners, Khosla Ventures, and Peak XV Partners also took part. Along with the investment, HCLTech acquired a 10.46% stake in the company.

The fresh capital will be used to develop new AI models and increase computing capacity. Sarvam said it is working on future systems focused on coding, cybersecurity, and AI agents that can carry out tasks with limited human input.

“We believe there is a huge opportunity to build AI for India’s needs,” co-founder Pratyush Kumar said. He added that the company is focused on creating models that understand Indian languages, work with local data, and remain affordable for large-scale use.

Founded in 2023 by Vivek Raghavan and Pratyush Kumar, Sarvam has quickly emerged as one of India’s leading AI startups. The company builds language, speech, and vision AI products for businesses and government organizations.

Sarvam said its recently launched reasoning model, Sarvam 105B, has shown strong performance across a range of tests. It has also developed Sarvam 30B, a smaller model designed to run on standard consumer hardware.

The company reported growing demand for its products. Its conversational AI platform now handles more than two million interactions every day, while its inference platform processes over ten million API requests daily. According to Sarvam, usage of the platform has tripled over the past three months.

Its AI tools are also being used beyond chat applications. Sarvam said its vision models have helped digitize more than 35 million pages of documents, while its speech technology transcribes over 500,000 hours of audio every month.

HCLTech said the partnership will help combine Sarvam’s AI expertise with its own enterprise reach and engineering capabilities. The company believes the collaboration can help accelerate the adoption of AI across businesses and public-sector organizations.

Sarvam’s products are already being used in industries such as banking, insurance, defence, and government services. The startup said its multilingual voice platform has supported projects involving millions of farmers and insurance customers across India.

Co-founder Vivek Raghavan said the company wants advanced AI technology to be accessible across sectors and create practical value for businesses, governments, and citizens.

The funding comes as interest in homegrown AI technologies continues to grow. With questions around access to some overseas AI models, Indian companies and policymakers have increasingly emphasized the need to build strong domestic AI capabilities.

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