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Sarvam AI and Krutrim are building India's domestic AI models and computing infrastructure.
Fractal Analytics, CoRover and Yellow.ai are expanding AI use across enterprises and public services.
Major funding rounds, new contracts and business deals reflect growing investor interest in India's AI sector.
India’s AI sector has moved past basic chatbots and simple automation. Local companies are now building language models, cloud infrastructure, enterprise software and assistants for government services. Five names stand out for their work and growth: Sarvam AI, Krutrim, Fractal Analytics, CoRover and Yellow.ai. Their business models are quite different, but they’re all going after the same growing market.
Sarvam AI was founded in Bengaluru in 2023 by Pratyush Kumar and Vivek Raghavan, and it has become one of the main names in India’s push for homegrown AI. It builds large language models, voice tools and AI systems for Indian users. The idea is simple: models that actually understand local languages and fit what Indian businesses need.
In June 2026, Sarvam announced a USD 300 million Series B round that values the company at roughly USD 1.5 billion. HCLTech and Bessemer Venture Partners came in, alongside existing investors Khosla Ventures and Peak XV Partners. The money is meant for model research, computing capacity and enterprise services, with some research going into AI agents, coding and cybersecurity. For an Indian company trying to build its own AI stack, that’s a big step.
Bhavish Aggarwal founded Krutrim in 2023 with big plans: Indian AI models, chips and computing systems. The Bengaluru company has since changed course and now puts most of its weight behind AI cloud services and domestic computing infrastructure.
It has raised about USD 75 million, and in May 2026 it reported FY26 revenue of around Rs. 300 crore, close to triple the year before, along with its first annual net profit. The chip design and fabrication plans are on pause so the team can concentrate on the cloud. Krutrim also says it doesn’t urgently need outside funding. The real test now is whether it can turn cloud demand into steady, lasting revenue.
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Fractal has been in data science and business analytics since 2000. Based in Mumbai, it helps large companies use AI for forecasting, customer insights, risk analysis and big business decisions. Srikanth Velamakanni and Pranay Agrawal lead a business built firmly on enterprise services.
The company listed publicly in 2026, so investors can now see how it’s actually performing. In August it announced a dedicated India Business Unit to grow its local enterprise work. Its Cogentiq platform is at the heart of its agentic AI strategy, and this year it also launched an e-commerce version of it, became a preferred services partner in the Claude Partner Network and added features to its healthcare product, Vaidya. Its public results should give a clearer picture of how much big companies are really willing to pay for AI services.
CoRover, founded in Bengaluru in 2016 by Ankush Sabharwal, builds voice, text and video AI tools. Its BharatGPT platform is used by government offices, banks, hospitals, travel firms and customer service teams. The goal is to let people use digital services in familiar Indian languages, including by voice.
In February 2026 it announced a large deployment of its multilingual platform using NVIDIA speech models, and it launched BharatGPT DeskAI, an offline desktop AI appliance. The company says the platform supports more than 800,000 concurrent users. In October it won a MeitY and NeGD contract to build a unified AI assistant and agentic AI platform, with DigiLocker as the first use case. Its BharatGPT models also appeared on India’s AIKosh platform after a MeitY review. All of this gives CoRover a firm footing in public-sector AI.
Yellow.ai started in Bengaluru in 2016. Co-founders Raghu Ravinutala, Jaya Kishore Reddy and Rashid Khan built a platform that helps companies handle customer and employee requests across chat, voice, email and social media. These days the focus is on AI agents that can take care of support tasks and business workflows.
The company has raised about USD 102 million over the years, including a Series C in 2021 backed by Lightspeed, Salesforce Ventures, Sapphire Ventures and WestBridge Capital. In August 2026 it announced a proposed business combination with Nasdaq-listed Bluerock Acquisition Corp, valuing the combined company at about USD 550 million. Yellow.ai reported more than USD 34 million in unaudited revenue last fiscal year. One caution: the deal still needs shareholder approval and has to meet closing conditions, so it isn’t a completed funding round yet.
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Each of these companies is taking a different route. Sarvam is betting on local AI models, Krutrim on cloud, Fractal on large businesses, CoRover on public services and Yellow.ai on enterprise AI agents. What happens next will come down to revenue, customer trust and the ability to deliver at scale. Big funding rounds and major contracts open doors, but lasting success depends on whether real customers keep paying for what these companies build.
1. Which are the five leading AI companies transforming India's technology sector?
Sarvam AI, Krutrim, Fractal Analytics, CoRover and Yellow.ai are five notable companies shaping India's AI industry.
2. What does Sarvam AI do?
Sarvam AI develops large language models, voice tools and AI solutions that support Indian languages and local business needs.
3. How is Krutrim contributing to India's AI industry?
Krutrim focuses on domestic AI cloud services and computing infrastructure. It reported FY26 revenue of approximately Rs. 300 Crore and its first annual net profit.
4. What makes Fractal Analytics different from other AI companies?
Fractal focuses on enterprise AI, advanced analytics and business intelligence. Its Cogentiq platform supports agentic AI solutions for large organisations.
5. How do CoRover and Yellow.ai use AI?
CoRover develops BharatGPT and multilingual AI assistants for public services and businesses. Yellow.ai builds enterprise AI agents that automate customer support and business workflows.