Bengaluru-based AI startup Sarvam AI has joined the unicorn club with fresh funding led by HCLTech, signaling growing domestic focus on sovereign AI. Meanwhile, fintech giant Razorpay has confidentially filed for an IPO with Sebi, setting the stage for one of India’s prominent tech listings in 2026.
- Sarvam AI’s funding round led by HCLTech values it at $1.5 billion
- Razorpay confidentially files IPO, eyeing $600-700 million raise
- UK proposes social media ban for under-16s and new online regulations
What happened
Sarvam AI, a homegrown artificial intelligence startup based in Bengaluru, secured $234 million in a funding round led by IT major HCLTech, pushing its valuation to $1.5 billion. Other investors like Bessemer Venture Partners, Khosla Ventures, and Peak XV Partners also participated. This financing round is poised to close at around $300 million, highlighting strong confidence in the company’s AI models that support 22 Indian languages.
At the same time, fintech company Razorpay confidentially filed its draft red herring prospectus with India’s securities regulator Sebi. The fintech firm is set to raise approximately $600-700 million via the IPO at an anticipated valuation between $5 billion and $6 billion, down from a previous $7.5 billion valuation. Razorpay recently completed key regulatory prerequisites, including shifting its legal domicile from the US to India, to enable the domestic listing.
Why it matters
Sarvam AI’s rise reflects India’s growing ambitions to develop sovereign AI capabilities amid increasing global restrictions, such as the US ban on critical AI models from Anthropic for foreign nationals. The new funding round comes at a time when investing in foundational AI technologies domestically is crucial for India's technology independence and leadership in multilingual AI applications.
Razorpay’s IPO marks a significant milestone in India’s fintech sector, showcasing investor appetite for companies offering innovative digital payment and banking solutions. The company processes hundreds of billions of dollars yearly and aims to expand in higher-margin segments, making its public debut a key bellwether for the Indian startup ecosystem’s maturity and capital market depth.
What to watch next
Attention will be on Sarvam AI’s deployment of its AI models and partnerships post-funding, especially how it navigates the evolving landscape of AI exports and data sovereignty. The company's progress could influence policy discussions on India’s AI autonomy amid escalating geopolitical tech competition.
For Razorpay, market response to its IPO will be a critical indicator of investor sentiment toward Indian fintech firms navigating profitability challenges while scaling rapidly. Their focus on business banking and cross-border payments could define the next phase of revenue growth, and scrutiny will also be on overall market conditions impacting new-age tech listings in India.