Cognizant in talks to invest in Sarvam AI at $3.5-4 Bn valuation
Sarvam AI is reportedly in talks to raise money from Nasdaq-listed IT services company Cognizant Technology Solutions, in a round that could value the Bengaluru-based startup at $3.5 Bn to $4 Bn. Discussions are ongoing.
According to an ET report citing sources, Sarvam is seeking around $300 Mn in fresh capital. Cognizant could acquire a small stake, and the startup has also held talks with large domestic enterprises to anchor the round.
The proposed valuation would be more than double the $1.5 Bn Sarvam secured in its previous round. That round was the first close of a $300 Mn Series B in June 2026, which brought in $234 Mn and made Sarvam a unicorn. HCLTech led it with $150 Mn, with Bessemer Venture Partners participating alongside existing investors Khosla Ventures and Peak XV Partners.
Founded in 2023 by Pratyush Kumar and Vivek Raghavan, Sarvam develops foundational AI models, computing infrastructure and enterprise applications. Its offerings target businesses and government agencies seeking 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 for processing documents and recognising text in Indian languages, and Saaras V4, its speech-to-text model. In October, it launched Bulbul V4 Flash, a text-to-speech model for generating natural speech across Indian languages.
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Sarvam's enterprise customers include Life Insurance Corporation of India, SBI Life, IDFC First Bank, Tata Capital and CRED, according to ET. It recently appointed former Google Cloud India head Sashikumar Sreedharan as president and chief business officer. Earlier this week, it announced a memorandum of understanding with Headquarters Integrated Defence Staff under the defence ministry to establish a framework for AI projects across the Indian Army, Navy and Air Force.
IT companies are looking to strengthen their AI capabilities as advances in generative and agentic AI raise questions about traditional outsourcing models. AI agents are increasingly capable of automating tasks across software development, application maintenance and back-office operations.
Cognizant has indicated that investments and acquisitions could support its shift towards a business built around 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, focusing on platforms and delivering outcomes rather than billing based on effort.
An investment by Cognizant would make it the second IT services major on Sarvam's cap table after HCLTech.
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