[Update] Bhavish Aggarwal’s Krutrim Denies Report on $300 Million Fundraising Plan

Update | April 21, 2025, 5:30 pm
Krutrim has issued a statement denying claims in the media reports regarding its fundraising efforts. The company clarified that it is not seeking external equity capital, and any reports suggesting otherwise are "speculative and misleading." The company remains focused on executing its AI strategy with existing funds.

Bhavish Aggarwal, founder of Ola and Ola Electric, was reportedly planning to raise up to $300 million (around INR 2,561 crore) for his artificial intelligence startup, Krutrim. The funding was said to include a mix of equity and debt to support its product and infrastructure expansion.

Krutrim Cuts Fundraising Target as Investors Remain Cautious

According to a Mint report citing sources close to the matter, Aggarwal had initially aimed for a $500 million raise but revised the target to $300 million due to muted investor sentiment. Factors such as the past business performance of Ola and its aggressive expansion strategy were cited as reasons for reduced interest.

No confirmed investment offers were mentioned, but the report claimed Aggarwal remained confident about closing the round soon, with potential participation from global financial institutions like Goldman Sachs, JP Morgan, and SBI Capital Markets.

What Krutrim Plans to Build with the Funding

Krutrim was launched in 2023 with a focus on building artificial intelligence products designed for Indian users. The company introduced its own large language model in December 2023 and became India’s first AI unicorn just a month later, in January 2024. The company has raised approximately $75 million in previous funding from investors like Z47 (formerly Matrix) and the Sarin Family.

Krutrim aims to create AI solutions in Indian languages, along with launching AI servers, cloud services, and consumer devices. The fresh funding will likely support the development of these offerings and help the company grow its team and infrastructure.

The startup is betting big on the future of AI in India. Its long-term goal is to offer locally trained AI models that can power businesses and consumer applications across the country.

Krutrim AI Labs and Vision for India’s AI Future

In 2025, Aggarwal launched Krutrim AI Labs, aiming to develop AI technologies tailored specifically for the Indian market. Initially, the venture is backed by INR 2,000 crore in investments, with plans to scale up to INR 10,000 crore by next year. Krutrim’s goal is to build an AI ecosystem capable of competing with global players like OpenAI, Google, and Anthropic.

Krutrim is actively working on multiple AI models, including:

• Krutrim-2, a next-generation language model
• Chitrarth 1, focused on images and text
• Dhwani 1, designed for speech recognition
• Vyakhyarth 1, designed for Indian languages

Krutrim is also constructing India’s largest AI supercomputer, equipped with NVIDIA’s GB200 chips. This supercomputer is expected to enhance both AI and cloud infrastructure within the country.

📢 Krutrim Issues Statement Denying Fundraising Reports

Following the circulation of fundraising reports, Krutrim has denied the claims in an official press statement. The company called the reports inaccurate, speculative, and misleading, stating:

“Krutrim presently is not raising any external equity as the company is well funded by the promoter and select investors and it continues to invest towards executing its AI strategy.”

It further stated that the fundraising claims were inaccurate and clarified that all updates would be shared through official channels.

Bhavish Aggarwal: Education | Personal Life | Success Story

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