Tag: HCLTech

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Technology

Sarvam AI enters unicorn club with $234 mn raise

India’s artificial intelligence ecosystem received a major boost as Bengaluru-based AI startup Sarvam AI entered the unicorn club after raising $234 million in a funding round led by HCLTech. The funding has valued the company at $1.5 billion, making it one of India’s newest technology unicorns.

The investment marks a significant milestone not only for Sarvam AI but also for India’s growing ambitions in the field of generative artificial intelligence. HCLTech emerged as the lead strategic investor in the funding round, acquiring a 10.5% stake in the company through an investment of about ₹1,427 crore.

Founded in Bengaluru, Sarvam AI has positioned itself as a developer of sovereign AI technologies tailored to Indian languages and use cases. The company has been working on foundational AI models and infrastructure aimed at reducing dependence on foreign technologies while supporting India’s digital ecosystem.

The $234 million raised represents the first close of Sarvam’s ongoing Series B funding round, which is targeting a total raise of $300 million. Besides HCLTech, investors in the round include Bessemer Venture Partners, while existing backers such as Khosla Ventures and Peak XV Partners have also continued their support.

The fresh capital is expected to be used for expanding AI infrastructure, developing advanced models and scaling enterprise deployments. Industry observers say the funding could accelerate efforts to build a stronger domestic AI ecosystem and help Indian companies compete globally in a rapidly evolving sector.

For Sarvam’s founders and employees, the unicorn milestone represents the culmination of a journey that began less than three years ago. For India’s AI industry, it signals a growing belief that world-class artificial intelligence products can be built and scaled from within the country.

For India’s startup ecosystem, the development is being viewed as a sign of growing investor confidence in homegrown AI innovation. As governments and businesses increasingly seek local AI capabilities, companies like Sarvam are attracting attention for building technology designed specifically for Indian requirements.

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Technology

HCLTech anchors ₹2,800 cr bet on Sarvam AI

HCLTech is set to lead a major investment of around $300 million (about ₹2,800 crore) in Bengaluru-based AI startup Sarvam AI, marking one of its biggest moves into the artificial intelligence space.

The funding round is expected to value Sarvam AI at nearly $1.5 billion (about ₹12,000 crore), reflecting strong investor interest in AI companies focused on building large language models and enterprise tools.

As part of the deal, HCLTech is expected to invest around $150 million. Other investors, including Bessemer Venture Partners, are likely to contribute about $50 million, while the remaining amount will come from global funds such as Nvidia-linked investors, Prosperity7, Activate and Glade Brook Capital.

Sarvam AI focuses on developing AI systems designed for Indian languages and enterprise use cases. The company is part of a growing push to build local AI models that can compete in the global generative AI race while also serving India-specific needs.

The latest valuation represents a sharp jump from its earlier funding round, showing rising confidence in India’s AI ecosystem. The deal also stands out because it marks a major Indian IT services company directly leading a large AI startup investment, beyond its traditional outsourcing and services business.

Industry experts say this reflects a broader shift in the tech sector, where IT companies are increasingly investing in or partnering with AI startups to stay relevant in a fast-changing market.

If completed, the funding round will be one of the largest AI-focused investments in India so far, strengthening Sarvam AI’s position in the country’s emerging “sovereign AI” space.

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Corporate

HCL Tech shares slide after weak Q4 show

Shares of HCL Technologies plunged more than 10 per cent after the company reported weaker fourth-quarter results and gave a cautious outlook for the coming year. The sharp fall erased nearly ₹38,000 crore from the company’s market value.

The stock was among the biggest losers in the market as investors reacted negatively to lower-than-expected earnings and slower growth guidance. It also dragged other IT shares lower during the session.

For the January-March quarter, HCL Tech posted a net profit of ₹4,488 crore. While the figure was higher than the same period last year, it was more than 6 per cent lower compared to the previous quarter. Revenue growth also came in below market expectations.

Analysts said investors were mainly concerned about the company’s outlook for FY27, which appeared weaker than expected. Several brokerages downgraded the stock and cut their target prices after the results.

Market experts said global uncertainty, cautious client spending and delays in decision-making by customers continue to weigh on the IT services sector. Some large overseas clients are reportedly reducing project sizes or postponing new contracts.

HCL Tech management said near-term demand remains mixed, especially in key markets like the United States. However, the company said long-term demand for digital transformation, cloud services and artificial intelligence remains strong.

The weak update from HCL Tech also raised concerns about the broader Indian IT industry, which has been facing slower growth due to reduced technology spending by global clients. Shares of other major IT companies also came under pressure following the announcement.

Despite the disappointing market reaction, HCL Tech declared an interim dividend of ₹24 per share for shareholders.

Also Read: Google Cloud, CVC partner to speed up AI adoption

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1 Minute-Read

HCL Tech Q3 revenue, margin seen rising

HCL Technologies is set to report a strong Q3 for December, with analysts expecting about 12% year‑on‑year revenue growth, supported by seasonal demand, engineering services, and large deal ramp‑ups.

Profit after tax may rise around 5%, as margin recovery offsets wage hikes and restructuring costs. Sequential revenue and margin improvements are also anticipated.

Market focus will be on deal wins, management’s FY26 guidance, and trends in GenAI and discretionary IT spending. Strong performance could reinforce investor confidence in HCL’s growth and operational strategy.

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1 Minute-Read

HCLTech buys HPE Telco unit for $160 million

HCLTech will acquire Hewlett Packard Enterprise’s Telco Solutions business for $160 million, including performance-linked incentives. The deal is expected to close within six months.

Nearly 1,500 engineers from 39 countries will join HCLTech’s global team. The acquisition strengthens HCLTech’s telecom portfolio, including 5G, AI network automation, operations support, and subscriber data management.

The business supports over a billion devices worldwide. This follows HCLTech’s earlier HPE asset acquisition. The move aims to accelerate network transformation and offer advanced services to global communication providers, boosting innovation and engineering capabilities.