Bhavish Aggarwal led AI startup ‘Krutrim’, is in discussion among top news channels. Reports are claiming Krutrim is planning to raise $300 million in funding. As this claim went viral, the Company officially clarified the fake rumor and said the company’s financial strategy is misrepresented. Let’s explore rumour and reality.
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Krutrim: $300m Fund Raising Report.
Bhavish Aggarwal’s AI venture ‘Krutrim’ has become a headline among all news portals. Most are claiming that Ola’s AI venture, ‘Krutrim’, plans to raise $300 million in the new funding round. As per reports, it will be the first funding round in this startup since January last year.
Among all the reporters, Mint was the first to report, claiming that AI venture Krutrim was earlier set to raise a $500 million fund, but due to investors’ negative interest, the funding amount was decreased to $300 million.
Reportedly, Goldman Sachs, JP Morgan, and SBI Capital Markets are set to manage this funding round, and it will include both equity and debt components. As per reports’ speculation, Matrix Partners, which contributed to Krutrim’s initial $75 million funding, is expected to fund $25 million additionally.
Bhavish Aggarwal’s AI ventures’ earlier plan to raise $500 million was part of a greater plan. Reportedly, the company was planning to raise $1 billion by 2026, but now it looks uncertain to meet the target.
$300m Fundraising: A Fake Report.
This ongoing headline is now declared as an unofficial report. PTI reported, on Monday, Krutrim’s AI startup denied the reports on a plan to raise $300 million in a combination of equity and debt. The AI venture clarified that it is not engaged in any discussion regarding fund fundraising plan.
“The article falsely suggests that Krutrim is engaged in discussions to raise external equity capital and misrepresents the financial strategy and operations of the company. Krutrim categorically denies the claims made in the article, “The Startup’s statement read.
PTI reported that the company will not raise any external equity as it is well funded by the promoter and select investors. Now, it’s solely focused on executing its AI strategy. The startup’s statement stated that further reports of incorrect- “Any report suggesting otherwise is entirely incorrect”.
Actual Investment Plan in Krutrim.
In February, Ola’s AI Venture officially announced the planned investment of around ₹10,000 crore over the next years. Ola’s AI venture has also launched India’s first AI research lab named Krutrin AI Lab. Reportedly, Bhavish Aggarwal’s AI venture has already invested ₹2,000 crore.
Under this investment, the AI venture is set to create India’s largest AI computing cluster, which is named GB200 and NVL72. Systems will leverage Nvidia’s tech, where super-fast processors and powerful graphics chips will be used to process AI tasks.
“Our goal is to drive greater usage with our expanding cloud infrastructure and the increasing availability of GPUs. Adoption is still limited because use cases are still being developed, “Ola Electric’s group CIO Navendu Agarwal said.
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