Peak XV & Lightspeed Ventures propel Sarvam.AI with $41M in Series A funding round

Sarvam AI, a homegrown generative artificial intelligence (AI) startup, recently closed a Series A funding round, raising an impressive $41 million. Led by ‘Lightspeed Ventures’, with participation from ‘Peak XV Partners’ and ‘Khosla Ventures’, this funding marks a significant milestone for the company.

The funding journey

The $41 million funding injection comes at a pivotal moment when investors are increasingly placing their bets on Generative AI startups in India. This funding is not just a financial boost for Sarvam but a testament to the growing recognition and potential of generative AI technologies in the country.

Sarvam's mission and vision

Sarvam has outlined a clear mission — to create a population-scale impact by layering Gen AI on top of the highly successful India stack. This ambitious goal is specifically targeted at public-good applications, showcasing the company's commitment to making a positive societal impact.

Founders' expertise and background

Vivek Raghavan and Pratyush Kumar founded the startup in July 2023. The duo bring a wealth of experience to the table. With previous stints at Infosys and AI4Bharat, they have a solid foundation in the AI domain. Raghavan, in particular, played a pivotal role in building Digital Public Goods (DPGs) like Aadhaar, showcasing his deep understanding of the intersection of technology and public services.

The Generative AI landscape in India

Generative AI, a technology capable of producing various types of content, has been a buzzword globally. While software giants like SAP, Salesforce, and IBM have explored this space in the West, Indian SaaS and tech companies are now catching up. The rapid adoption of generative AI tools, such as ChatGPT, has led to a surge in Indian GenAI-based Software-as-a-Service (SaaS) startups, doubling in number since 2021.

Sarvam's strategic approach

Sarvam's strategic approach involves co-developing domain-specific AI models with Indian enterprises, leveraging their data. This not only ensures the customisation of AI solutions but also fosters collaboration between tech startups and established businesses, creating a symbiotic ecosystem.

Funding impact on Indian Generative

AI startups Sarvam's funding success is part of a larger trend in India. The demand for generative AI tools has led to the emergence of numerous startups, collectively raising over $590 million in funding as of May 2023, according to a report by SaaSBoomi and McKinsey.

With the newly acquired funds, Sarvam is set to focus on India-specific offerings. This includes training AI models to support the diverse set of Indian languages and voice-first interfaces, addressing the unique linguistic and cultural landscape of the country.