Startup Originals Team
Krutrim, led by Ola founder Bhavish Aggarwal, is sharpening its focus on launching advanced AI solutions and restructuring after completing a major data annotation project that required large linguistics teams. These layoffs follow similar workforce reductions earlier this year, bringing total exits at Krutrim to over 200 in 2025.
Strategic Realignment and Project Completion:
- The impacted team members include leads and transcribers working on regional languages such as Bengali, Malayalam, and Punjabi.
- Company leaders state the layoffs align with a shift toward a leaner, core AI platform team, now that the heavy linguistics phase is finished.
- Insiders reveal that Krutrim may outsource some language-related tasks moving forward, rather than support large in-house teams.
Leadership Changes and Ongoing Challenges:
- Since April, more than six senior executives, including leaders in AI data, software, cloud, and finance, have exited Krutrim, adding to an overall tally of over 20 departures this financial year.
- Krutrim’s key products, such as Krutrim Cloud and the “Kruti” AI assistant app (with around 207,000 downloads since June), have seen slow growth due to ongoing tech challenges.
Funding, Expansion, and Ambitious Goals:
- Krutrim raised $75 million in January, joining India’s unicorn club with support from major investors like Z47 (ex-Matrix) and the Sarin family.
- The company aims to commit up to $1.2 billion and scale its data center capacity to 1 GW by 2028, all while working on Krutrim 3, a multibillion-parameter advanced large language model.
- Krutrim also recently acquired BharatSahAIyak, signaling intent to grow in government and enterprise AI.
Krutrim’s latest restructuring marks a period of transformation as India’s AI sector evolves. While staff cuts and leadership turnover reflect internal and market pressures, the company remains focused on building powerful, scalable AI platforms for the next phase of growth.
