AI startup Krutrim, founded by Bhavish Aggarwal, has pivoted its business model towards AI cloud services, reporting around ₹300 crore in revenue for FY26, nearly three times higher than the previous year.
The company has stepped back from its earlier ambitions of building its own large language models and semiconductor chips, and is instead focusing on AI infrastructure, including cloud-based compute and enterprise tools. This strategic shift appears to be yielding results, with Krutrim indicating that it has turned profitable and is now operating with improved capital efficiency. It also stated that it does not require immediate external funding.
Krutrim has developed its own AI cloud platform and is currently working with over 25 enterprise clients across sectors such as mobility, fintech, and e-commerce. The surge in demand for GPU-based computing has been a key driver of this business.
The pivot follows a period of internal restructuring. In 2025, the company laid off over 150 employees as it recalibrated priorities. Around the same time, its promoter Ola Electric pledged shares to raise funds for building a data centre to support Krutrim’s infrastructure ambitions.
The shift also comes amid challenges on the consumer front. Krutrim’s AI assistant “Kruti” recently went offline and was unavailable across platforms, reflecting difficulties in scaling consumer facing AI products.
By focusing on revenue generating infrastructure services instead of long gestation research, Krutrim is aligning itself with a growing market for AI cloud solutions in India. However, questions remain about the extent of external customer adoption, as part of its early revenue is believed to come from within the Ola ecosystem.
As competition intensifies in India’s AI infrastructure space, Krutrim’s ability to expand beyond its existing network will be key to sustaining growth.
Build smarter. Learn faster. Grow stronger with StartupByDoc.