Cognizant In Talks To Invest In Sarvam At $3.5 Bn To $4 Bn Valuation: Report

AI unicorn Sarvam AI is reportedly in talks to raise funds from Nasdaq-listed IT services company Cognizant Technology Solutions as part of a funding round that could value the startup at $3.5 Bn to $4 Bn.

The Bengaluru-based startup is seeking around $300 Mn in fresh capital, ET reported, citing sources. The proposed valuation would be more than double the $1.5 Bn valuation it secured in its previous funding round.

Cognizant could acquire a small stake in Sarvam, although discussions are ongoing, the report said. The startup has also held talks with large domestic enterprises to anchor the round.

Inc42 has reached out to Sarvam and Cognizant for comments on the development. The story will be updated on receiving a response.

The talks come four months after Sarvam raised $234 Mn in the first close of its $300 Mn Series B in June 2026, becoming a unicorn. HCLTech led the round with a $150 Mn investment, while Bessemer Venture Partners participated alongside existing investors Khosla Ventures and Peak XV Partners.

An investment by Cognizant would make it the second IT services major on Sarvam’s cap table after HCLTech.

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.

Sarvam’s Enterprise Push

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.

Sarvam is also expanding its enterprise business, with customers including 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, Sarvam 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.

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