Krutrim Clocks Rs 300 Crore Revenue in FY26, Turns Profitable After Cloud Pivot

Bhavish Aggarwal’s AI startup dropped its chip and LLM ambitions in late 2025, refocused on AI cloud infrastructure, and now serves more than 25 enterprise clients with no immediate need for external funding.

Krutrim, the AI startup founded by Bhavish Aggarwal, has reported revenues of approximately Rs 300 crore in FY26, a threefold increase over the previous year, alongside its first annual net profit, with a profit after tax margin exceeding 10 percent.

The milestone comes after a significant strategic realignment in late 2025, in which the company stepped back from plans to build its own large language models and semiconductor chips. Instead, Krutrim redirected capital and talent toward building and scaling a full-stack AI cloud services platform developed entirely in-house, with no external dependencies.

Krutrim said it now serves more than 25 large enterprise customers across sectors including telecom, financial services, consumer internet, healthcare, logistics, AI and deep-tech companies. The company said a majority of its GPU compute capacity is already committed to external enterprise workloads, and that the platform is seeing strong demand for sovereign, India-built AI cloud services.

A Krutrim spokesperson said: “The company has reached an important milestone of being profitable, self-funded, and gaining market traction. Our AI cloud is built for Indian enterprises, by Indian engineers. The external client momentum we are seeing validates the depth of our platform.”

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The pivot follows a difficult period. In late 2024, the company laid off more than 150 employees as it recalibrated priorities. Ola Electric, Krutrim’s promoter, pledged 10.71 crore shares, representing about 2.43 percent of its equity, to raise funds for a Krutrim data center. Earlier this year, Krutrim’s consumer AI assistant Kruti went offline and remained inaccessible across web and app stores.

Krutrim said it is now financially self-sustaining and has no immediate requirement for external funding, including from its founder.

The company achieved unicorn status in 2024 following its inaugural funding round, becoming what it claimed was India’s first AI unicorn and the country’s fastest startup to reach a $1 billion valuation. It was co-founded by Aggarwal and Krishnamurthy Venugopala Tenneti, a senior figure from within the Ola ecosystem.

There is, however, a critical question the revenue figures alone do not answer. In FY25, 90 percent of Krutrim’s Rs 101.7 crore in revenue came from entities within the Ola Group, including Ola Electric Mobility and ANI Technologies. How much of the FY26 revenue growth reflects genuine external market traction versus continued intra-group business remains unclear. The company has pointed to its growing roster of external enterprise clients as evidence of real diversification, but independent verification of that breakdown is not yet available.

Krutrim enters a crowded domestic race. Several Indian startups are competing to build AI infrastructure and cloud compute capacity as enterprises seek local alternatives to global providers. Krutrim’s claim to be among the limited players operating a full-stack, domestically built AI cloud at production scale positions it as a meaningful contender, but sustaining that position will depend on how far it can grow its revenue base beyond the Ola ecosystem.

Disclaimer: This article is based on publicly available reporting and is intended for informational purposes only. Facts are accurate as of the date of publication.

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