Fresh funding has propelled Sarvam AI into the unicorn club. This and more in today’s ETtech Top 5.Also in the letter:■ UK eyes under-16 ban■ India's AI upgrade■ Zetwerk’s revenue reboundSarvam raises $234 million led by HCLTech at $1.5 billion valuation Vivek Raghavan and Pratyush Kumar, cofounders, Sarvam AIHomegrown AI startup Sarvam AI has secured $234 million in a new Series B funding round, led by IT services giant HCLTech.Deal details:The funding values the Bengaluru-based company at $1.5 billion.Bessemer Venture Partners, Khosla Ventures and Peak XV Partners also participated.HCLTech is investing $150 million.The round is expected to close at $300 million.ET had reported in April that Glade Brook Capital, Nvidia and existing investor Lightspeed Venture Partner were also likely to participate.Sarvam was previously valued at $110 million when it raised funding in 2023 from Peak XV, Khosla Ventures and Lightspeed.Background: Sarvam’s fundraising coincides with the country's efforts to bolster its domestic AI capabilities. The clamour for increased investment in sovereign AI has intensified, especially after the US imposed export controls on Anthropic’s latest AI models last week.Sarvam is among a small number of Indian startups developing foundational AI models locally. In February, the company launched its first homegrown models, Sarvam-30B and Sarvam-105B, supporting 22 Indian languages.Razorpay confidentially files IPO papers with Sebi Harshil Mathur and Shashank Kumar, founders, RazorpayFintech major Razorpay has confidentially filed its draft red herring prospectus (DRHP) with Sebi and stock exchanges, setting up one of this year’s most closely tracked new-age listings.The pre-filed DRHP, dated June 12, follows shareholder approval to raise Rs 2,700 crore through a mix of fresh issue and offer-for-sale.Tell me more: Razorpay is eyeing a $600–700 million raise at a likely valuation of $5–6 billion, a step down from its last private mark of $7.5 billion over four years ago, as we reported in April.Backed by marquee investors such as Y Combinator, Peak XV, Lightspeed, Tiger Global and GIC. With the filing, Razorpay now joins a growing list of startups choosing the confidential route to market.IPO-ready: The move comes after Razorpay completed its shift of domicile from the US to India and converted into a public entity, the key regulatory plumbing needed for a domestic listing.India biz: Operationally, Razorpay processes about $180 billion in payments annually and is pushing harder into higher-margin segments such as cross-border payments and business banking via RazorpayX.Profitability push: Revenue jumped 65% to Rs 3,783 crore in FY25, but losses widened to Rs 1,209 crore on account of one-off costs.Razorpay joins several new-age companies – including Swiggy, Groww, Meesho, and Zepto – that have used the confidential IPO filing route in recent years.UK Prime Minister Starmer plans social media ban for under-16s UK Prime Minister Keir Starmer has proposed banning social media for children under 16 and tightening access to gaming and livestreaming platforms, as Britain moves to harden online safeguards for young people.More details:The government is also weighing overnight curfews, app usage caps, and mandatory breaks from infinite scrolling for under-18s.Further details are due in July.The plan follows a review of Australia’s ban, which took effect earlier this year, and extensive feedback from teachers, parents, young people and industry stakeholders. More than 116,000 people responded to the government’s consultation.Zoom out: The proposal builds on Britain's increasingly tough stance on tech companies, including rules on age verification, algorithm design and efforts to stop children from sharing nude images.Other countries:Australia was the first country to ban social media for under-16s, blocking access to platforms including TikTok, YouTube, Instagram and Facebook.Since then, countries including India, Indonesia, Malaysia, France and Turkey have all explored similar measures.India looking to scale up local AI infrastructure; NITI to review New Delhi is preparing a fresh push to deepen India’s artificial intelligence (AI) ecosystem, this time with a sharper focus on domestic infrastructure and lower dependence on foreign tech providers.Driving the news:NITI Aayog has been tasked with identifying gaps in the current AI landscape. Its report is expected to shape either an expanded India AI Mission or an entirely new programme.The current India AI mission, launched in 2024 with Rs 10,372 crore in funding, focuses on GPUs, data platforms, startups, and responsible AI. Tell me more: The next phase will tilt resources towards local data centres, GPU clusters, and tighter sector-specific rules to reduce data leakage.The urgency stems from two constraints: India’s limited access to cutting-edge global AI models and an AI adoption rate that remains below 50%.The global AI market is projected to reach $1 trillion by 2031. India’s slice today is about $7.84 billion, and policymakers want that to grow meaningfully.Data systems get AI overhaul: In parallel, the Ministry of Statistics and Programme Implementation (MoSPI) has set up a panel to examine the adoption of the UN’s System of National Accounts (SNA) 2025. Also Read:Anthropic block marks US reversal, warning to Silicon ValleyIPO-bound Zetwerk’s FY26 operating revenue rises to Rs 15,900 crore: Crisil Srinath Ramakkrushnan and Amrit Acharya, cofounders, ZetwerkIPO-bound contract manufacturing startup Zetwerk is estimated to have seen its operating income rise to Rs 15,900 crore in FY26, up from Rs 12,800 crore in FY25, according to the latest Crisl filing. Scale is back in focus:Zetwerk had an order book of over Rs 12,000 crore as of March 2026, to be executed over 12-18 months.The company has reclassified its business into energy, precision, capital goods and ecosystem, which Crisil described as trading.It has confidentially filed for a Rs 5,000-crore IPO.But risks remain:Crisil assigned an A-/Negative rating to Zetwerk’s proposed Rs 500-crore NCDs.The negative outlook is linked to possible losses from its civil EPC exit.Operating margin remains thin at about 2.6%, while debt stood at Rs 2,700-2,800 crore.