Sarvam AI Eyes $3B Valuation, HCLTech Profits Rise 21%
Sarvam AI, an Indian AI startup, is in talks to raise $250-300 million at a $3 billion valuation, potentially doubling its valuation within four months. This move could make it India’s most valuable AI startup. Discussions are in early stages, focusing on large domestic enterprises and institutions to maintain significant Indian shareholding, with potential adjustments to the amount and valuation.
In June, the startup secured over $300 million at a $1.5 billion valuation, with HCLTech leading the round. Nvidia and IndiGo Ventures also participated in a $75 million extension.
Sarvam AI’s Growth Trajectory
Sarvam AI focuses on building larger models and computing infrastructure for enterprise deployments. Its plans include developing a trillion-parameter model and opening a San Francisco office to recruit researchers. The company recently hired Sashikumar Sreedharan, former head of Google Cloud India, to bolster its leadership team.
The startup specializes in creating Indian-language AI models for government agencies, banks, and insurers. Its clients include Life Insurance Corp. of India, SBI Life, and Cred.
HCLTech reported a 21% rise in Q2 net profit to Rs 5,132 crore, with revenue climbing 11% to Rs 35,620 crore. They declared an interim dividend of Rs 12 per share, with a record date of October 16 and payment scheduled for October 26, 2026.
Despite strong growth, CEO C Vijayakumar remains cautious due to market volatility. He noted that while demand improved toward the end of the quarter, the environment has been unpredictable over the past two years. HCLTech raised the lower end of its FY27 revenue forecast to 2.5-4% from 1-4%, reflecting cautious optimism. Vijayakumar emphasized that the company will provide further updates at the end of the third quarter.
Mesa School of Business Expands with AI Integration
The Mesa School of Business has secured Rs 110 crore in funding at a Rs 385 crore valuation. This round includes Rs 85 crore in equity and Rs 25 crore in venture debt. The funding will support the expansion of its programs and the integration of AI into its curriculum, enhancing its educational offerings.
Co-founded by Varun Limaye and Ankit Agarwal, Mesa School offers undergraduate and postgraduate programs focused on startup leadership and entrepreneurship. Since its inception, the school has grown from 60 students in its first cohort to over 550 students across three programs as of August.
The funding round also included a secondary transaction of Rs 3 crore by cofounder Varun Limaye. The investment was co-led by Dharana Capital and existing investor Elevation Capital, with venture debt provided by InnoVen Capital and Alteria Capital.
Zetwerk’s IPO Promises Significant Returns for Early Investors
Business-to-business (B2B) manufacturing platform Zetwerk has set a price band of Rs 143-151 per share for its initial public offering (IPO), valuing the company at up to Rs 25,583 crore ($2.7 billion). The IPO will raise Rs 5,012 crore, including a Rs 2,830 crore fresh issue and a Rs 2,182 crore offer for sale (OFS).
Early investors stand to gain significantly. Kae Capital will earn 38.3-fold returns by selling 12.6 million shares for Rs 190 crore while retaining stock worth Rs 651 crore. Accel will realize Rs 181 crore with 19.3-fold returns, retaining shares valued at Rs 1,611 crore. Peak XV Partners and Lightspeed Venture Partners also expect substantial returns, with Lightspeed earning Rs 427 crore through the OFS and retaining shares worth Rs 1,861 crore. Peak XV’s two funds are set to clock 3.3x-23.9x returns, realizing Rs 353 crore and retaining shares worth Rs 2,457 crore.
