Gruve.ai Revolutionizes IT Consulting with AI

Businesses are eager to harness the power of AI. However, many struggle to move AI projects from pilot phase to real-world application. Gruve.ai, founded by the team behind Rahi Systems, offers a solution.

Rahi Systems, an IT solutions company acquired by Wesco in 2022, provides the foundation for Gruve.ai's expertise. Traditional IT consulting firms often rely heavily on human capital, resulting in high costs for clients. Gruve.ai aims to change this.

“The technology services industry hasn’t been disrupted in the last 25 to 30 years,” Tarun Raisoni, CEO of Gruve, told TechCrunch. “AI truly changes that dynamic.”

AI-Driven Efficiency and Scalability

Gruve.ai disrupts the traditional model in two key ways:

  • AI Agents: Automating repetitive tasks with AI agents reduces the need for large consulting teams.
  • Usage-Based Pricing: Clients pay based on usage, not hourly rates, aligning costs with value.

This innovative approach enables Gruve.ai to achieve software-like gross margins of 70% to 80%, significantly higher than traditional firms, according to Navin Chaddha, managing partner at Mayfield.

This potential has attracted significant investment. Gruve.ai recently secured a $20 million Series A round led by Mayfield, with participation from Cisco Investments and others, bringing total funding to $37.5 million.

Client-Focused Implementation

Gruve.ai prioritizes understanding client needs. The team analyzes business processes and data before recommending and implementing AI solutions.

“You must understand your customer’s business before you can implement because their business processes are different, their workflows are different. How they service their clients is different,” Raisoni said.

Once ready, Gruve.ai utilizes AI agents for tasks like security breach detection and cloud CRM migration. The company partners with established vendors like Cisco, IBM’s Red Hat, and Google, as well as AI-native startups like Glean and Supervity.

Usage-Based Billing: A New Paradigm

Unlike traditional consultancies, Gruve.ai's billing aligns with usage. "Services are available on demand, the same way electricity is provided or cloud computing is provided," Chaddha said. For example, with AI-powered security, clients are billed only when a breach is detected and analyzed.