As part of Sarvam's ongoing $300 million funding round, the central government could end up holding a 1-2% stake in the homegrown artificial intelligence startup, which is being valued at about $1.5 billion, according to people familiar with the matter.
The development marks a rare instance of the Indian government acquiring a direct equity holding in a private AI startup through non-cash support. The stake stems from compute infrastructure allocated to Sarvam under the IndiaAI Mission. In return, the government was issued compulsorily convertible debentures (CCDs), which are set to turn into equity as part of the current fundraising round, the people said.
“The Centre will be taking a small stake in Sarvam. The support provided to companies under the IndiaAI Mission needs to be accounted for in some form, if not cash,” a government official said.
Sarvam did not respond to ET’s queries. Emails sent to the Ministry of Electronics and Information Technology (MeitY), which oversees the IndiaAI Mission, weren’t answered.
