Krutrim, the artificial intelligence startup founded by Bhavish Aggarwal, has shifted its focus to AI cloud services and reported around Rs 300 crore in revenue for FY26, nearly three times higher than last year. The company has stepped back from its earlier plans to build its own large language models and semiconductor chips. Instead, it is now focusing on offering AI infrastructure, including cloud-based compute and tools for businesses. This change in strategy seems to be working. Krutrim said it turned profitable during the year and is now running a more capital-efficient business. It also indicated that it does not need to raise fresh funds immediately.
This change in strategy seems to be working. Krutrim said it turned profitable during the year and is now running a more capital-efficient business. It also indicated that it does not need to raise fresh funds immediately. Krutrim has built its own AI cloud platform and is already working with more than 25 enterprise clients across sectors like mobility, fintech, and e-commerce. Growing demand for GPU-based computing has supported this business. The pivot also comes after a period of restructuring. Last year, the company laid off more than 150 employees as it recalibrated its priorities. Around the same time, Ola Electric, its promoter, pledged 10.71 crore shares, or about 2.43% of its equity, to raise funds for a Krutrim data centre.
Rather than spending heavily on long-term research projects, the company is now focusing on areas where it can generate revenue faster. At the same time, questions remain around how much of this revenue comes from outside clients. A part of the early business is believed to come from within the Ola ecosystem, and the company’s ability to grow beyond that will be important. Krutrim is now entering a space where several startups are trying to build AI infrastructure in India, as demand rises for local cloud and compute solutions.
About Krutrim
Krutrim has been founded by Ola's Bhavish Aggarwal. Krutrim is a prominent Indian artificial intelligence company and the country's first AI unicorn. As of May 2026, the company has successfully pivoted from initial generative AI model development to becoming a focused domestic AI cloud services provider.