@srinathbadri - The way serverless work is slightly different from EC2. While you obviously get the performance benefit in EC2 if compared with serverless as there are few problems like "cold-start", "different invocation time" that are very specific to serverless infra.

Consider going to serverless only once and put a CloudFront behind it. So that, once it is hit for 1 user from edge location, it is cached for all users gradually.

That way, you will have lesser hits on serverless infra and higher performance benefit with CloudFront’s edge caching