Krutrim, the AI startup founded by Bhavish Aggarwal, has pivoted to AI cloud services and reported approximately Rs 300 crore in revenue for FY26 — nearly three times its revenue from the previous year. The company also said it turned profitable during the year and no longer needs to raise fresh funds immediately.
The pivot marks a significant strategic shift. Krutrim has stepped back from earlier plans to build its own large language models and semiconductor chips, and is now focused on providing AI infrastructure — including cloud-based compute and tools — to enterprise clients. The company said it is already working with more than 25 businesses across sectors including mobility, fintech, and e-commerce, supported by growing demand for GPU-based computing.
The change in direction follows a period of restructuring. Last year, Krutrim laid off more than 150 employees as it reassessed its priorities. Around the same time, Ola Electric — Krutrim’s promoter — pledged 10.71 crore shares, representing about 2.43% of its equity, to raise funds for a Krutrim data centre. The company’s consumer-facing AI assistant, Kruti, also went offline earlier this year and remained inaccessible across web and app stores.
Rather than committing resources to long-term research, Krutrim is now directing its focus toward areas that generate revenue more quickly. The company describes its current model as more capital-efficient.
Questions remain, however, about the composition of that revenue. A portion of Krutrim’s early business is believed to come from within the Ola ecosystem, and its ability to grow its external client base may be a key factor going forward. Krutrim is now competing in a space where multiple startups are working to build AI infrastructure in India to meet rising demand for local cloud and compute solutions.
Source: Entrackr : Latest Posts