Evidence has been found that shows the India-based game development services studio Lakshya Digital is working on game assets for Kingdom Hearts III. Discovered through the resume page of Praveen Dubey, one of Lakshya Digital's character modeling and texture artist, he lists one of his recent works to be the upcoming Square Enix title.
Lakshya Digital specializes in outsourced work for game development and has worked on numerous titles in the past like Metal Gear Solid: Ground Zeroes, Dark Souls II, and Tekken 7.
Source: NeoGaf