AI unicorn Sarvam AI is reportedly in talks to raise funds from Nasdaq-listed IT services company Cognizant Technology Solutions as part of a funding round that could value the startup at $3.5 Bn to $4 Bn.

The Bengaluru-based startup is seeking around $300 Mn in fresh capital, ET reported, citing sources. The proposed valuation would be more than double the $1.5 Bn valuation it secured in its previous funding round.

Cognizant could acquire a small stake in Sarvam, although discussions are ongoing, the report said. The startup has also held talks with large domestic enterprises to anchor the round.

Inc42 has reached out to Sarvam and Cognizant for comments on the development. The story will be updated on receiving a response.

The talks come four months after Sarvam raised $234 Mn in the first close of its $300 Mn Series B in June 2026, becoming a unicorn. HCLTech led the round with a $150 Mn investment, while Bessemer Venture Partners participated alongside existing investors Khosla Ventures and Peak XV Partners.

An investment by Cognizant would make it the second IT services major on Sarvam’s cap table after HCLTech.

IT companies are looking to strengthen their AI capabilities as advances in generative and agentic AI raise questions about traditional outsourcing models. AI agents are increasingly capable of automating tasks across software development, application maintenance, and back-office operations.

Cognizant has indicated that investments and acquisitions could support its shift towards a business built around platforms and customer outcomes. During an earnings call in April, CEO Ravi Kumar said Cognizant saw acquisition opportunities aligned with its ambition to become an AI builder, focusing on platforms and delivering outcomes rather than billing based on effort.

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