Krutrim, the artificial intelligence venture founded by Bhavish Aggarwal, has pivoted its business model towards AI cloud services, moving away from its earlier focus on building foundational AI models and semiconductor chips.
The company reported revenue of around ₹300 crore in FY26, nearly tripling year-on-year, while also posting its first-ever annual net profit with margins exceeding 10%, marking a key milestone in its journey towards a sustainable business.
Launched in 2023 with the ambition of building India’s full-stack AI ecosystem including large language models, chips, and cloud, Krutrim had positioned itself as a sovereign AI alternative for the country.
However, following a business realignment in late 2025, the company has now reallocated capital and talent towards AI cloud infrastructure, effectively pausing its chip development and scaling back focus on foundational model building.
The new strategy centres around building a full-stack, in-house AI cloud platform designed to support enterprise workloads across sectors such as mobility, manufacturing, and customer operations. Krutrim’s pivot appears to be yielding early financial results. The company’s threefold jump in revenue, from roughly ₹100 crore in FY25 to ₹300 crore in FY26 comes alongside its first profitable year, indicating improved operational discipline and monetisation.
Krutrim’s evolution comes against the backdrop of significant capital backing from Aggarwal, who has committed ₹2,000 crore with plans to invest up to ₹10,000 crore into the venture.
The startup had also gained attention for becoming India’s fastest unicorn in 2024, underscoring the high expectations placed on its ability to build indigenous AI capabilities.
