Ola's AI arm Krutrim cuts fundraising target by $200 mn amid low interest

Bhavish Aggarwal's AI venture Krutrim has reduced fundraising target from $500 million to $300 million, as broader investor interest appears to be tepid

Bhavish Aggarwal’s ambitious AI venture Krutrim is now eyeing a reduced fundraising target of up to $300 million—down from the earlier plan to secure $500 million—amid muted investor interest, according to a report by Mint.

 

No formal investment offers have been confirmed yet, but Krutrim is reportedly in talks with several global venture capital firms and is confident about onboarding major backers in the coming months. The funding round is managed by Goldman Sachs, JP Morgan, and SBI Capital Markets, and is expected to include both equity and debt components.

 

Matrix Partners, which led Krutrim’s initial $50 million round, is believed to be contributing an additional $25 million, but broader investor interest appears to be tepid. The company’s earlier push to raise $500 million was reportedly part of a larger plan to secure $1 billion in funding by 2026 — a target that now looks uncertain.

 

 

What is Krutrim?

Launched in December 2023, the Bengaluru-based startup is part of the broader Ola group. Krutrim, named after the Sanskrit word for ‘artificial’, is Aggarwal’s foray into creating a homegrown artificial intelligence ecosystem, complete with indigenous AI models, data centres, and custom-designed chips. The startup aims to develop foundational AI models for Indic languages and build India’s own GPU chips.

 

The chip lineup, branded under names like ‘Bodhi’ for AI, ‘Sarv’ for general computing, and ‘Ojas’ for edge computing, is planned to debut gradually through 2026 and beyond. Krutrim has also announced partnerships with global players like Arm and Untether AI to support its hardware ambitions. However, the startup appears to be grappling with challenges on the funding front as well as internal setbacks.

 

What is making investors nervous?

Despite its big plans, Krutrim has not yet demonstrated any large-scale product applications or peer-reviewed research, which has raised skepticism among investors and industry experts. Unlike high-profile AI founders in the West, Aggarwal, while successful in mobility and EV ventures, is yet to establish his credibility in the AI domain.

 

This has left many unconvinced about the need for large capital injections into a company that is still in the early stages of execution and lacks a clear AI pedigree. 

  

Krutrim is also facing internal struggles including the departure of several senior engineers. The core engineering team, led by Sambit Sahu, has seen multiple exits, further fuelling questions about the company’s ability to deliver on its technological promises.