India’s homegrown artificial intelligence startup Sarvam AI is close to raising between $300 million and $350 million in a fresh funding round, as it looks to build a domestic challenger to global AI leaders, according to a Bloomberg report.
The Bengaluru-based company is expected to be valued at $1.5 billion to $1.55 billion in the round, which could close as early as next week, Bloomberg reported, citing sources.
Bessemer Venture Partners is likely to lead the round, with participation from Nvidia, Amazon and Prosperity7 Ventures, the report added.
Financialexpress.com could not independently verify this information.
Positioning as India’s AI contender
According to the Bloomberg report, Sarvam AI has been positioning itself as a key domestic player in the global AI race, particularly as India looks to reduce dependence on models built in the US and China.
The startup gained prominence earlier this year when it showcased its capabilities at an AI summit hosted by Prime Minister Narendra Modi, the Bloomberg report added. At the event, the company unveiled a model designed specifically for India’s linguistic and cultural diversity.
The government has increasingly emphasised the need for sovereign AI capabilities, arguing that countries must retain control over critical technologies as artificial intelligence becomes central to economic and strategic competitiveness, the report added.
Focus on Indian languages and voice
Founded in 2023 by AI researchers Vivek Raghavan and Pratyush Kumar, Sarvam is building models that are optimised for India’s unique use cases, the Bloomberg report said.
According to the report, its systems are designed to operate through voice commands and support 22 Indian languages. This localisation strategy is expected to be a competitive advantage, especially as global models from companies like OpenAI and Alphabet continue to face limitations in handling Indian languages effectively, the report noted.
Push into enterprise AI
Beyond language models, Sarvam is also developing so-called “agentic” AI systems capable of performing tasks such as coding and meeting planning with minimal human intervention.
The company is betting on enterprise adoption, positioning its tools as a way to drive automation across businesses in one of the world’s fastest-growing digital economies.
“Today we show we can bring our own AI to a billion Indians,” co-founder Kumar had said at the February unveiling.