Sarvam AI, a Bengaluru-based startup specializing in generative artificial intelligence (GenAI), has successfully raised $41 million (approximately INR 342 crores) in a Series A funding round. This investment round was spearheaded by Lightspeed Venture Partners, with additional contributions from Peak XV Partners (formerly Sequoia India and Southeast Asia) and Khosla Ventures.
The funds will be used to develop a comprehensive GenAI suite that spans from pioneering research in custom AI model training to creating a robust platform for enterprise-level deployment and authoring. Sarvam AI, established in July 2023 by AI4Bharat founders Vivek Raghavan and Pratyush Kumar, focuses on building tailored large language models (LLMs) designed for specific Indian use cases.
Sarvam AI collaborates with Indian enterprises to create domain-specific AI models utilizing their proprietary data. The startup also aims to incorporate GenAI technology into India’s public service infrastructure to enhance its utility for public applications. According to Raghavan, “India has shown a unique ability to leverage technology, and with GenAI, we have the chance to revolutionize how this technology can benefit people’s lives.”
Vinod Khosla, founder of Khosla Ventures, emphasized the strategic significance of developing sovereign GenAI models, noting, “Many countries are developing their own GenAI models due to their importance. We need companies like Sarvam AI to build in-depth expertise for creating AI tailored to India.”
A report by Inc42 titled “India’s Generative AI Startup Landscape, 2023” projects the Indian generative AI market to expand significantly from $1.1 billion in 2023 to over $17 billion by 2030, growing at a compound annual growth rate (CAGR) of 48%. India currently has over 70 generative AI startups that have collectively raised more than $440 million between 2019 and Q3 2023.
The adoption of generative AI technologies by Indian startups has been notable, with several companies enhancing their offerings through GenAI. For instance, Flipkart co-founder Binny Bansal is set to launch an AI-as-a-service startup, and eyewear company Lenskart acquired AI-powered analytics firm Tango Eye in October.
Global investors are increasingly recognizing the potential of India’s GenAI sector. Google, for example, recently invested $500,000 in the Indian conversational AI startup CoRover and plans to invest an additional $4 million with the upcoming launch of BharatGPT. BharatGPT, developed by CoRover.ai, is an Indian GenAI platform available in over 12 Indian languages across video, voice, and text formats.
