Krutrim, the AI firm founded by Ola’s Bhavish Aggarwal, has laid off a significant portion of its linguistics team less than six months after their recruitment, as part of a strategy to maintain a leaner staff, the Economic Times (ET) has reported.

This marks the second wave of job cuts, with the company reportedly having laid off over 100 employees last week. In the initial round in June, it had already eliminated more than a dozen positions.

Based on documentation reviewed by ET, the layoffs stem from a shift in the company’s organisational priorities due to external circumstances. Sources cited fundraising delays and insufficient traction for its products as underlying reasons.

“In line with a strategic realignment and our dedication to effective capital utilisation, we are developing smaller, more agile teams. This adjustment aligns with shifting business needs and reflects our long-term goal of creating India’s own comprehensive AI platform,” Krutrim said in a statement to ET.

While Krutrim originally set out to raise $500 million, the objective has been decreased to $300 million due to lukewarm interest from investors. The company’s large language model and cloud offerings, which launched in 2024, have reportedly struggled to gain traction, as several startups have opted for more established platforms provided by global hyperscalers, the report added. 

Leadership changes have further compounded difficulties, with nearly a dozen senior executives leaving the company in 2024, and additional departures occurring early this year.

Despite these operational disruptions, Krutrim continues to assert that Kruti is India’s first agentic AI assistant, capable not only of responding to commands but also of performing tasks such as booking cabs, paying bills or ordering food. It presently supports 13 Indian languages.

Krutrim aims to integrate Kruti into India’s daily digital landscape by offering voice-driven services tailored to regional and non-English-speaking audiences.

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