Raai Lakshmi was born on 5 May 1989 in Belgaum, Karnataka to Ram Rai and Manjula Rai. She hails from the region of Saurashtra in Gujarat.She made her acting debut at the age of 15 in the Tamil film Karka Kasadara in 2005. Subsequently, she appeared in a number of Tamil films, including the comedy film Kundakka Mandakka (2005) opposite R. Parthiban, Perarasu’s action-masala flick Dharmapuri (2006), and the romance film Nenjai Thodu (2007). In 2008, she began working in more serious films such as the drama film Velli Thirai, in which she played herself, and the action thriller Dhaam Dhoom directed by Jeeva. She received positive feedback for her portrayal of a lawyer in the latter. A review from Behindwoods wrote: “The latter (Raai Lakshmi) sizzles even as she is supposed to play the court professional who is caught in the web of smuggling drugs”. She won her first Filmfare Award nomination in the Best Supporting Actress category.
She made her debut in Malayalam in 2007, starring in Rock & Roll opposite Mohanlal. She followed it up with several successful films such as Annan Thambi, 2 Harihar Nagar (2009), Evidam Swargamanu (2009) opposite Mohanlal, and Chattambinadu (2009) opposite Mammootty. She appeared in three Tamil films in 2009, Muthirai, Vaamanan and Naan Avanillai 2.
In Vaamanan, she played a glamorous supermodel. In 2010, she was seen in three films. She made special appearances during song sequences in two of them, In Ghost House Inn and Pen Singam and portrayed a cowgirl in the Tamil film Irumbukkottai Murattu Singam.in 2015, she signed two Malayalam films, Arabian Safari and Santhoshayi Gopiyetta and three Tamil films Oru Ticketla Rendu Cinema, Sowkarpettai and Arjun, Divya Matrum Karthik. After a brief gap of two years she performed her second item number opposite Pawan Kalyan in his Telugu film Sardaar Gabbar Singh (2016).Later she signed two Hindi films Akira and Julie 2.In May 2016 she signed to perform her third item number in Motta Shiva Ketta Shiva.