HCLTech Invests ₹1,427 Crore in AI Firm Sarvam AI for 10.46% Stake
HCL Technologies (HCLTech) is investing ₹1,427.25 crores for a 10.46% stake in Sarvam AI. This investment aims to bolster AI development and deployment. Sarvam AI also raised $234 million in its Series B funding round at a $1.5 billion valuation, with HCLTech as a lead strategic investor.
The substantial investment in a key AI player like Sarvam AI and its role as a strategic investor in a significant funding round indicate a high impact on HCLTech's future growth and its competitive positioning in the AI sector.
The investment in Sarvam AI is a strategic move for HCLTech to strengthen its position in the growing AI market, develop advanced AI solutions, and expand its service offerings, which is viewed positively.
HCL Technologies Limited (HCLTech) has announced a significant minority investment of ₹1,427.25 crores in Axonwise Private Limited, widely known as Sarvam AI. This investment, which is expected to be completed within two weeks of signing and is a 100% cash consideration, will acquire a 10.46% stake in the Indian AI company.
Sarvam AI, incorporated on July 14, 2023, and headquartered in Bengaluru, is focused on building India's full-stack sovereign AI platform. Its business includes training and serving artificial intelligence (AI) models, foundation models, and an AI products suite for enterprises, developers, and government. The company's focus verticals are banking, insurance, government technology, and defence.
The investment by HCLTech is intended to fund Sarvam's continued research and development for next-generation frontier models in agentic AI, coding, and cybersecurity use cases. It will also provide Sarvam with access to compute at scale to expand its deployment across key industry verticals. HCLTech aims to leverage its enterprise transformation expertise and global client relationships to accelerate Sarvam's vision. This will enable HCLTech to develop industry-specific language models and AI solutions for its global clients, and leverage Sarvam's multilingual AI capabilities for both sovereign AI initiatives and enterprise deployments. The investment is expected to accelerate the development and adoption of sovereign AI solutions for governments and enterprises seeking localized, secure, and compliant AI deployments.
Sarvam AI reported unaudited financials for FY 2026 with a turnover of ₹45.10 crores. Its revenue for FY 2025 was ₹1.50 crores, with nil revenue in FY 2024. The company has existing partnerships with major Indian enterprises such as SBI Life, LIC, IDFC, Tata Capital, and CRED.
Separately, Sarvam AI announced the first close of its $300 million Series B funding round, raising $234 million at a post-money valuation of $1.5 billion. HCLTech led this round as a strategic investor with an investment of $150 million. Other investors in this round include Bessemer Venture Partners, Khosla Ventures, and Peak XV Partners. The funding will support Sarvam's research on its next frontier model and access to compute resources.
HCLTech's CEO & Managing Director, C Vijayakumar, stated that the investment in Sarvam signifies a step towards building India's trusted and globally competitive AI ecosystem. Sarvam has developed foundational models trained in India, including Sarvam 105B and Sarvam 30B, and its speech and vision models are being deployed across various sectors. Sarvam's conversational platform handles over 2 million interactions daily, and its agentic platform is being adopted by a leading fintech company.
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