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Krutrim, AI startup founded by Bhavish Aggarwal, has shifted its business strategy towards AI cloud services, reporting revenue of around INR 300 crore for FY26 nearly three times higher than the previous year. The move marks a significant change from its earlier focus on building its own large language models and semiconductor chips.
The company is now concentrating on providing AI infrastructure, including cloud-based computing power and tools tailored for enterprises. This transition appears to be delivering results with Krutrim stating that it turned profitable during the year and is operating with improved capital efficiency. It has also indicated that it does not require immediate external funding.
Krutrim has developed its own AI cloud platform and is currently working with more than 25 enterprise clients across sectors such as mobility, fintech, and e-commerce. The growing demand for GPU-based computing has supported this shift, as businesses increasingly look for scalable AI solutions within India.
The strategic pivot follows a period of internal restructuring. In the previous year, the company laid off over 150 employees as part of efforts to realign its priorities. Around the same time, Ola Electric, its promoter, pledged a portion of its equity to raise funds for building a data centre to support Krutrim’s infrastructure ambitions.
The change in direction also comes after challenges in its consumer-facing offerings. Krutrim’s AI assistant, Kruti, recently went offline and was unavailable across platforms, highlighting issues in sustaining consumer products.
By focusing on services that generate quicker revenue, the company is positioning itself in a growing segment of AI infrastructure. However, questions remain about how much of its current revenue comes from external clients, as early traction is believed to be linked to the Ola ecosystem.
As competition intensifies, Krutrim’s ability to expand beyond its existing network will be key to sustaining growth.
This article was originally
published by the 
