Ola Co-Founder's New Venture Shifts Focus to Cloud Services
Krutrim Shifts Focus to AI Cloud Services, Reports Threefold Revenue Growth
Bhavish Aggarwal-led AI firm Krutrim has undergone a significant business realignment, shifting its focus from building AI models and chip design to AI cloud services. This move, undertaken in late 2025, marks a strategic pivot for the company, which is now concentrating on its cloud infrastructure stack.
According to company officials, Krutrim has achieved an important milestone, becoming profitable, self-funded, and gaining market traction. The AI cloud platform, built in-house and deployed at scale, is designed to support enterprise workloads across sectors such as mobility, manufacturing, and customer operations. The platform's external client momentum is a testament to the depth of its platform.
Krutrim's financial performance has been impressive, with revenue reaching approximately Rs 300 crore for FY26, a threefold increase from the previous year. The company has also reported its first annual net profit, with a profit after tax margin of over 10%. This financial stability has enabled Krutrim to become financially self-sustaining, eliminating the need for immediate external funding.
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The move comes on the heels of Ola group of companies completing the shift of its entire workload to Krutrim's AI cloud services. This decision was announced by founder and CEO Bhavish Aggarwal on May 22, 2025, following the company's decision to snap ties with its cloud service provider Microsoft Azure.
| Company | Revenue FY26 | Revenue FY25 |
|---|---|---|
| Krutrim | Rs 300 crore | Rs 100 crore |
| Ola Group | N/A | N/A |
Krutrim's cloud services have also attracted significant interest, with over 2,500 developers signing up to work on the platform. The company's founder, Bhavish Aggarwal, has pledged additional shares of Ola Electric to secure funding for Krutrim, demonstrating his commitment to the venture.
Timeline of Key Events
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- January 26, 2024: Krutrim launches, founded by Ola founder and chairman Bhavish Aggarwal
- March 2025: Aggarwal pledges 5.88 crore shares of Ola Electric to secure funding for Krutrim
- May 22, 2025: Ola group completes shift of its entire workload to Krutrim's AI cloud services
- June 2025: Krutrim reports threefold revenue growth, becomes financially self-sustaining
Investor Takeaway
Investors should consider Krutrim's shift in focus towards AI cloud services as a positive development, potentially leading to increased revenue and profitability.
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