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Sarvam gets state backing; Andy Jassy’s India visit
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Happy Thursday! The Indian government may soon end up taking a stake in Sarvam AI. This and more in today’s ETtech Morning Dispatch.
Also in the letter:
■ Pocket FM dials back video
■ India’s Pax Silica play
■ AI drives cybersecurity boom
As Sarvam AI closes one of the largest funding rounds in India's AI ecosystem, the Centre could emerge as an unlikely shareholder.
Tell me more: The government may end up with a 1-2% stake in the startup through compute credits extended under the IndiaAI Mission.
Why it matters: This is among the first instances of the Indian government taking direct equity exposure in a private AI startup.
The big picture: Instead of writing cheques as grants, the IndiaAI Mission has structured part of its support as convertible instruments, tying public money to the upside from successful AI companies.
Also Read: Sarvam raises $234 million led by HCLTech at $1.5 billion valuation
Follow the money:
Also Read: ETtech interview: AI is a capital game; our fundraise is large for India but quite small in the global context: Sarvam cofounders
Former Infosys CEO Vishal Sikka's new enterprise-focused AI startup, Hang Ten Systems, has raised $32 million in seed funding led by venture capital firm Mayfield.
More on the round: Aramco Ventures also participated, and entrepreneur Jerry Yang has joined the board. The company will use the funds to expand its team and deepen its work with global enterprise customers.
Amazon CEO Andy Jassy (right) and Maharashtra CM Devendra Fadnavis
Amazon chief executive Andy Jassy is in India this week to meet government officials, entrepreneurs and employees, as the company triples down on quick commerce.
Jassy met Maharashtra CM Devendra Fadnavis on Wednesday. Sources said he will meet Prime Minister Narendra Modi on Thursday.
Rapid delivery push: Amazon will expand its quick commerce service, Amazon Now, to 300 cities, tripling its earlier target of 100, backed by a network of 1,000 micro-warehouses, or dark stores.
Amazon Now currently runs about 500 dark stores across 15 metro and non-metro cities, including Bengaluru, Delhi-NCR, Mumbai, Pune, Hyderabad, Amritsar and Kochi.
Also Read: Beyond the top 3, Amazon and Flipkart wage war to win the quick commerce crown
Customer traction: Amazon says the service is seeing strong demand, especially from Prime members.
“Prime members triple their shopping frequency once they start using Amazon Now. We have further accelerated our expansion and will offer ultra-fast deliveries to customers in over 300 cities of India,” Samir Kumar, country manager, Amazon India, said.
Background:
Swiggy Instamart chief operating officer (COO) Ankit Jain and chief business officer (CBO) Hari Kumar have stepped down from their roles, people in the know told us.
Tell me more: Both executives, who joined Swiggy from Flipkart, have left the company citing personal reasons.
“The company has identified somebody, who is set to join soon. Swiggy is hiring for more management-level positions,” said a source.
Pocket FM is winding down Pocket TV, its microdrama vertical, even as rivals Kuku Technologies and Mohalla Tech are making short, vertical video dramas central to their public-market stories.
The move sharpens a key investor question around the category: microdrama is seeing adoption, but can content-led platforms retain and monetise users without burning heavily on acquisition and a constant pipeline of shows?
Why Pocket FM is stepping back
Why rivals are still betting big
Union Minister for Electronics and Information Technology Ashwini Vaishnaw, second right, with US Ambassador to India Sergio Gor, centre, and others, during an event announcing India joining the Pax Silica initiative, in New Delhi.
India will use the Pax Silica Summit in Washington, D.C., to pitch itself as a semiconductor investment destination and seek access to global funding, officials told ET.
What is this event? Pax Silica is a US State Department flagship initiative aimed at strengthening economic security through trusted technology partnerships.
India's aim: Officials said India will showcase its growing semiconductor manufacturing and design capabilities, the expanding Assembly, Testing, Marking and Packaging (ATMP) ecosystem, and the scale of its domestic market.
India is also hoping domestic semiconductor projects can access the US State Department's $250 million Pax Silica seed fund.
"While the size of the fund may not push the needle on semiconductor investments, it will be important in establishing bilateral trust and cooperation, while also deepening industry linkages in the Indian market. That is the target at this meeting," one official said.
Important attendees:
AI creating biggest cybersecurity opportunity in years: Zscaler CEO | The rapid rise of advanced artificial intelligence models capable of identifying software vulnerabilities at unprecedented speed is creating one of the biggest opportunities the cybersecurity industry has seen in years, according to Zscaler founder and chief executive Jay Chaudhry.
Infosys’ Salil Parekh topped IT CEO pay in FY26; here’s what the big chiefs made: Infosys CEO Salil Parekh was the highest-paid chief executive among India's top IT firms in FY26, earning Rs 82.6 crore, up 2.5% from the previous year, per the company's annual report.
■ If you want to cut your screen time, just get a Brick (TechCrunch)
■ The Trump White House Is Over Anthropic CEO Dario Amodei (Wired)
■ China and the West are taking opposite paths on EV battery recycling (Rest of World)
Also in the letter:
■ Pocket FM dials back video
■ India’s Pax Silica play
■ AI drives cybersecurity boom
IndiaAI backing could make government a minority shareholder in Sarvam
As Sarvam AI closes one of the largest funding rounds in India's AI ecosystem, the Centre could emerge as an unlikely shareholder.
Tell me more: The government may end up with a 1-2% stake in the startup through compute credits extended under the IndiaAI Mission.
Why it matters: This is among the first instances of the Indian government taking direct equity exposure in a private AI startup.
The big picture: Instead of writing cheques as grants, the IndiaAI Mission has structured part of its support as convertible instruments, tying public money to the upside from successful AI companies.
Also Read: Sarvam raises $234 million led by HCLTech at $1.5 billion valuation
Follow the money:
- Sarvam received the largest compute subsidy under the programme, securing access to 4,096 Nvidia H100 GPUs.
- The resulting CCDs are now expected to convert into equity as part of the startup's ongoing $300-million round at a $1.5-billion valuation.
Also Read: ETtech interview: AI is a capital game; our fundraise is large for India but quite small in the global context: Sarvam cofounders
Vishal Sikka’s AI startup Hang Ten Systems raises $32 million
Former Infosys CEO Vishal Sikka's new enterprise-focused AI startup, Hang Ten Systems, has raised $32 million in seed funding led by venture capital firm Mayfield.
More on the round: Aramco Ventures also participated, and entrepreneur Jerry Yang has joined the board. The company will use the funds to expand its team and deepen its work with global enterprise customers.
Amazon CEO Andy Jassy visits India; to meet PM Modi today
Amazon chief executive Andy Jassy is in India this week to meet government officials, entrepreneurs and employees, as the company triples down on quick commerce.
Jassy met Maharashtra CM Devendra Fadnavis on Wednesday. Sources said he will meet Prime Minister Narendra Modi on Thursday.
Rapid delivery push: Amazon will expand its quick commerce service, Amazon Now, to 300 cities, tripling its earlier target of 100, backed by a network of 1,000 micro-warehouses, or dark stores.
Amazon Now currently runs about 500 dark stores across 15 metro and non-metro cities, including Bengaluru, Delhi-NCR, Mumbai, Pune, Hyderabad, Amritsar and Kochi.
Also Read: Beyond the top 3, Amazon and Flipkart wage war to win the quick commerce crown
Customer traction: Amazon says the service is seeing strong demand, especially from Prime members.
“Prime members triple their shopping frequency once they start using Amazon Now. We have further accelerated our expansion and will offer ultra-fast deliveries to customers in over 300 cities of India,” Samir Kumar, country manager, Amazon India, said.
Background:
- The move comes as Flipkart Minutes scales up aggressively as well, claiming 1,000 fulfilment centres across 130 cities in under two years.
- Amazon had earlier announced a Rs 2,800-crore investment in India to strengthen infrastructure and operations, as part of its broader $35-billion commitment by 2030.
Swiggy Instamart COO Ankit Jain, CBO Hari Kumar quit amid top-level rejig
Swiggy Instamart chief operating officer (COO) Ankit Jain and chief business officer (CBO) Hari Kumar have stepped down from their roles, people in the know told us.
Tell me more: Both executives, who joined Swiggy from Flipkart, have left the company citing personal reasons.
“The company has identified somebody, who is set to join soon. Swiggy is hiring for more management-level positions,” said a source.
Pocket FM winds down microdrama to focus on audio dramas, overseas market
Pocket FM is winding down Pocket TV, its microdrama vertical, even as rivals Kuku Technologies and Mohalla Tech are making short, vertical video dramas central to their public-market stories.
The move sharpens a key investor question around the category: microdrama is seeing adoption, but can content-led platforms retain and monetise users without burning heavily on acquisition and a constant pipeline of shows?
Why Pocket FM is stepping back
- Pocket FM is refocusing on audio dramas and overseas markets ahead of a potential public listing, people aware of the matter told us.
- Video demands a different operating — fresh production, casting, localisation and a steady slate of shows.
- The company has also been in the market to raise fresh capital, while exploring a reverse flip, as ET reported last week.
Why rivals are still betting big
- Kuku Technologies has filed confidentially for a Rs 3,500-crore IPO at a targeted valuation of around Rs 15,000 crore.
- Mohalla Tech is also preparing for an IPO, with Quick TV and Moj anchoring its video bet.
- The winner, investors say, may not be the platform with the most content, but the one with cheaper distribution, higher repeat usage and stronger monetisation.
India eyes chip investments at Pax Silica Summit
India will use the Pax Silica Summit in Washington, D.C., to pitch itself as a semiconductor investment destination and seek access to global funding, officials told ET.
What is this event? Pax Silica is a US State Department flagship initiative aimed at strengthening economic security through trusted technology partnerships.
India's aim: Officials said India will showcase its growing semiconductor manufacturing and design capabilities, the expanding Assembly, Testing, Marking and Packaging (ATMP) ecosystem, and the scale of its domestic market.
India is also hoping domestic semiconductor projects can access the US State Department's $250 million Pax Silica seed fund.
"While the size of the fund may not push the needle on semiconductor investments, it will be important in establishing bilateral trust and cooperation, while also deepening industry linkages in the Indian market. That is the target at this meeting," one official said.
Important attendees:
- From India — senior officials from the Ministry of Electronics and Information Technology and the Ministry of External Affairs.
- From abroad — representatives from the Netherlands, Germany and the European Union are the newest entrants to the pact.
- Also present — senior executives from leading global AI companies.
Other Top Stories By Our Reporters
AI creating biggest cybersecurity opportunity in years: Zscaler CEO | The rapid rise of advanced artificial intelligence models capable of identifying software vulnerabilities at unprecedented speed is creating one of the biggest opportunities the cybersecurity industry has seen in years, according to Zscaler founder and chief executive Jay Chaudhry.
Infosys’ Salil Parekh topped IT CEO pay in FY26; here’s what the big chiefs made: Infosys CEO Salil Parekh was the highest-paid chief executive among India's top IT firms in FY26, earning Rs 82.6 crore, up 2.5% from the previous year, per the company's annual report.
Global Pick We Are Reading
■ If you want to cut your screen time, just get a Brick (TechCrunch)
■ The Trump White House Is Over Anthropic CEO Dario Amodei (Wired)
■ China and the West are taking opposite paths on EV battery recycling (Rest of World)
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