Krutrim shifts to cloud services after reporting FY26 revenue and first profit
Updated
Updated · TechCrunch · May 5
Krutrim shifts to cloud services after reporting FY26 revenue and first profit
2 articles · Updated · TechCrunch · May 5
The Bengaluru startup said FY26 revenue reached about ₹3 billion, margins topped 10%, and more than 25 enterprise customers now use its AI cloud services.
It said most GPU capacity is committed to external workloads after a late-2025 overhaul that reallocated capital and talent and paused chip design efforts.
The pivot follows layoffs of more than 200 staff, the April removal of its Kruti app, and sparse product updates since releasing the Krutrim-2 base model.
Is Krutrim's profitable pivot to cloud a strategic win or a quiet admission of failure?
As its first AI unicorn quits the model race, is India's dream of sovereign AI already over?