Sarvam AI nears ₹700cr funding led by NVIDIA
What's the story
Indian AI start-up Sarvam is gearing up to raise $74 million (around ₹700 crore) in an extension of its Series B funding round. The investment will be led by global tech giant NVIDIA, with participation from Glade Brook Capital, Gaja Capital, Indigo Ventures, and other investors. The development comes soon after Sarvam raised $234 million in a round led by HCL Technologies.
Approval details
NVIDIA will lead this round
The Sarvam AI board has approved the issuance of 20,244 Series B preference shares and seven equity shares at an issue price of ₹3,44,570 each. This is to raise ₹698 crore or $74 million.
NVIDIA will lead the round with an investment of ₹238 crore ($25 million), followed by Glade Brook Capital which will invest ₹190.3 crore ($20 million).
Investor participation
Angel investors and family offices are also participating
Other investors in this funding round include Gaja Capital and Sanjay Kalra & Jyotika Kapoor, who will invest ₹95 crore and ₹50 crore, respectively.
Angel investors and family offices such as Vrijesh Agarwal, KJ Trust, and AL Trust are also participating.
After this tranche's allotment, NVIDIA will hold a 1.66% stake in the company, while Glade Brook Capital will own 1.33%.
Valuation impact
Sarvam's valuation and founder stake
According to Entrackr's analysis, Sarvam will be valued at around ₹14,342 crore or $1.51 billion post-money.
HCL Technologies' stake will be diluted to 9.95% while the founders will retain a 38.44% stake in the company after this funding round.
Recently, the firm also appointed Thinking Machines Lab founding member Devendra Singh Chaplot as advisor.