Krutrim’s Layoffs, Garuda Aerospace Goes Global, and MakeMyTrip Partners with Premier Inn

Just six months after its high-profile hiring spree, Krutrim - the AI venture founded by Ola’s Bhavish Aggarwal - has conducted yet another round of layoffs. This time, over 100 employees, primarily from the linguistics division, were let go. And this isn’t just a number. It signals a deeper issue gnawing at India’s most ambitious AI project - one that promised to build “India’s own AI stack,” from large language models to semiconductors. But beneath the nationalist pitch lies a familiar story of overreach, inadequate product traction, and growing internal chaos.

Officially, the company claims that 80% of the AI assistant "Kruti" has already been trained and therefore they don’t need as many people anymore. But reports from inside suggest a very different picture - one of stalled product development, low user adoption, and strategic backpedaling.

Krutrim’s layoffs aren’t happening in a vacuum. In fact, they come on the heels of serious allegations of a toxic work culture. In May 2025, a young machine learning engineer named Nikhil Somwanshi was found dead in Bengaluru. While the company stated that he was on personal leave, viral Reddit posts and subsequent media reports alleged he died by suicide due to extreme work pressure.

To be fair, these are allegations and haven’t been legally proven. But the fact that multiple sources have echoed similar concerns, combined with the company’s tight-lipped response, makes it hard to ignore. At a time when global AI giants are competing on talent and culture, Krutrim is becoming known for exactly the opposite. And that’s only the human side of the problem.

Technically, Krutrim set out to create deep Indic-language intelligence, a voice-first AI assistant, and even manufacture proprietary AI chips in India. The pitch was grand: a vertically integrated AI stack for India, by India. But building AI chips isn’t like building electric scooters. It demands not only vision, but billions in sustained R&D funding, deep semiconductor expertise, and long-term market trust. Krutrim had neither.

Krutrim originally aimed to raise $500 million. That number has now been revised down to $300 million, and even that target is reportedly facing “tepid” investor interest. With only ₹2,000 crore committed from Bhavish’s personal funds against a ₹10,000 crore ambition, the company risks burning massive capital on chip development without any near-term return. It’s a high-stakes bet that could drain resources from Krutrim’s core AI initiatives, especially when competitors like NVIDIA and Google pour in billions annually into silicon.

Meanwhile, product traction has remained elusive. Indian startups and enterprises are still opting for AWS, Azure, GCP, or even direct OpenAI/Gemini APIs. Krutrim’s “cost-effectiveness” and “data sovereignty” pitch hasn’t been compelling enough, perhaps because performance and reliability still matter more than nationalism when it comes to deploying critical AI services.

Even Krutrim’s much-hyped agentic AI assistant, Kruti, faces stiff headwinds. Agentic AI, where assistants can complete real-world tasks like bookings and payments, is no longer novel. ChatGPT, Gemini, and others are aggressively building plugin ecosystems and APIs that integrate with services across the world, including India. Krutrim’s edge? It’s largely tied to the Ola ecosystem. That’s a limited sandbox, especially when users prefer switching between apps that serve specific needs better.

In fact, Krutrim’s challenges mirror what we’ve seen with other aggressive tech plays from Bhavish Aggarwal. Ola Electric faced similar concerns around internal culture and delayed product rollouts. Now, Krutrim appears to be repeating that playbook - moving fast, hiring big, pushing vision, and then retreating when reality hits.

The layoffs, the controversy, the funding crunch - they all raise a larger question: Can India build world-class AI products without importing the worst of Silicon Valley’s excesses? Speed is good. But AI isn’t ride-hailing. It’s science, engineering, iteration, and a long-term game of trust and consistency.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Paayega Jo Laksh Hai Tera”: Garuda Aerospace Gets Licence To Supply Drones To Overseas Markets

Garuda Aerospace just got the green light to export its drones globally, think US, Australia, and the Middle East.

Their star export is the Garuda Kisan, a made-in-India agri-drone ready to take on international farms. With profits more than doubling this year, the sky’s perhaps the only limit.

Read more here

“Jaane Wale Ko Kaun Rok Sakta Hai”: Krutrim Lays Off Over 100 Staff In Fresh Job Cuts

Krutrim has laid off over 100 employees in its second round of job cuts, with the linguistics team bearing the brunt.

The move comes under the banner of a “strategic realignment,” though it signals deeper challenges. Just last month, the company had let go of over a dozen staff.

Read more here

“Aakhri Salam Lete Jaana”: SoftBank’s Sumer Juneja Steps Down From IPO-Bound Lenskart Board

SoftBank’s Sumer Juneja has stepped down from Lenskart’s board just as the eyewear giant gears up for its IPO.

In his place, Sayali Karanjkar and Ashish Kashyap have joined as independent directors. Meanwhile, Lenskart’s shareholders have cleared a fresh fundraise of over INR 2,150 Cr to sharpen the IPO vision.

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“Hum Saath Saath Hai”: MakeMyTrip partners with Premier Inn hotels to add over 900 hotels to its offerings

MakeMyTrip is doubling down on outbound travel, partnering with UK’s Premier Inn to add 900 hotels to its global stay list.

This move boosts its direct contracting strategy, already spanning 2,000+ hotels across 50 cities. For Indian travelers heading abroad, that’s a lot more pillows to choose from.

Read more here

1. Cloud broadcast platform Amagi has filed IPO papers to raise INR 1,020 Cr through a fresh issue of shares. The public offer will also include a 3.41 Cr share offer-for-sale and a possible pre-IPO round.
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2. Lenskart’s shareholders have approved plans to raise INR 2,150 Cr via IPO, marking a key step toward its public debut. The eyewear giant is now expected to file its DRHP with SEBI soon.
   Read more here