Cognizant Technology Solutions is in discussions to invest in Bengaluru-based Sarvam AI as part of a roughly $300 million funding round that could value the startup at between $3.5 billion and $4 billion, The Economic Times reported on 28 October, citing people aware of the matter.
If the round closes at that range, Sarvam's valuation would more than double in roughly four months. Cognizant may take a small stake as part of the round.
The talks follow Sarvam's most recent raise. In June 2026, the company announced it had raised $234 million in the first close of its $300 million Series B at a post-money valuation of $1.5 billion. HCLTech led that round as the strategic investor, committing $150 million for a 10.46 per cent stake, alongside Bessemer Venture Partners and existing backers Khosla Ventures and Peak XV Partners.
Founded by Vivek Raghavan and Pratyush Kumar in 2023, Sarvam builds AI models, infrastructure and applications for Indian languages, enterprises and government use cases. In April 2025, the Ministry of Electronics and Information Technology selected Sarvam as one of the companies to develop an indigenous foundational model under the IndiaAI Mission.
Cognizant's reported interest comes as the company deepens its own AI spending. Earlier this month, it opened an India Artificial Intelligence Lab and a new Cognizant Moment Studio in Bengaluru, part of a broader $1 billion, three-year generative AI investment focused on multi-agent systems and AI decisioning.
HCLTech's lead investment in June established a template: large IT services firms taking direct positions in Indian AI builders rather than simply reselling third-party models. A Cognizant entry would make it the second of India's biggest IT employers to bet on Sarvam's stack. The proposed investment remains under discussion, and both the funding amount and valuation could change before any deal is signed.
Source : The Economic Times
