We propose a new method for creating computationally efficient convolutional neural networks (CNNs) by using low-rank representations of convolutional filters. Rather than approximating filters in previously-trained networks with more efficient versions, we learn a set of small basis filters from scratch; during training, the network learns to combine these basis filters into more complex filters that are discriminative for image classification. To train such networks, a novel weight initialization scheme is used. This allows effective initialization of connection weights in convolutional layers composed of groups of differently-shaped filters. We validate our approach by applying it to several existing CNN architectures and training these networks from scratch using the CIFAR, ILSVRC and MIT Places datasets. Our results show similar or higher accuracy than conventional CNNs with much less compute. Applying our method to an improved version of VGG-11 network using global max-pooling, we achieve comparable validation accuracy using 41% less compute and only 24% of the original VGG-11 model parameters; another variant of our method gives a 1 percentage point increase in accuracy over our improved VGG-11 model, giving a top-5 center-crop validation accuracy of 89.7% while reducing computation by 16% relative to the original VGG-11 model. Applying our method to the GoogLeNet architecture for ILSVRC, we achieved comparable accuracy with 26% less compute and 41% fewer model parameters. Applying our method to a near state-of-the-art network for CIFAR, we achieved comparable accuracy with 46% less compute and 55% fewer parameters.