Sanchi grew up in Moradabad. Her early desire to become an actress was influenced by viewing the performances of Bollywood actress Deepika Padukone, whose performances inspired Sanchi to become an actress. Hailing from a background with great influence in law—her mother is an advocate—Sanchi is also studying for an LLB degree at TMU University in Moradabad. She studied at S.D.M. Inter College, Moradabad, prior to attending Pawar Inter College.

Sanchi debuted in the cinema industry in 2021 with the film Jeene Ki Umeed Tumse Hi, which earned her early popularity and presented her talent to Indian cinema-goers. In 2022, she featured in the romantic film Aaye Hum Barati Barat Leke, further consolidating her reputation in the cinema industry. She was seen as a dancer in the music number "Ve Fukrey" in Fukrey 3 (2023) and received some notable fame for her character Kamala in the period TV series Slave Market.

Aside from TV and movies, Sanchi has appeared in a number of hit music videos, including "Dil Kya Kare" and "Jhoom Ke Saawan Aaya Hai." Her appearances in these projects have increased her popularity, and she now has a following locally and on social media. On her social media accounts, she endorses a number of brands, working with firms such as Tresbelle, Healthy Master, and Adipoli.

Sanchi’s personal life has been shaped by her family and her experiences. She lost her father when she was just 10 years old, an event that brought her closer to her mother, Neeta Bhatnagar. Her brother, Eshan Rai, is an engineer and entrepreneur who founded Meido Food Service, for which Sanchi acts as a brand ambassador.

Although early in her career, Sanchi Rai has already impressed the Indian entertainment world. With an increasing number of screen appearances and a large body of fans, Sanchi is considered a talent to watch. Her social media presence grows larger by the day, and she is still a highly influential role model to her fans, who impatiently wait for her next work and public appearance.