Former Tech Mahindra executive Jagdish Mitra to set up AI startup with up to $10M investment

Former Tech Mahindra India business head Jagdish Mitra has launched an AI startup with an initial investment ranging between Rs 65 to 80 crore.

The startup, set to begin operations within the next three months, aims to carve a niche in the AI industry by focusing on value-driven solutions rather than cost arbitrage.

"We will start going to customers in 8-12 months. Initially, we will invest $8-10 million," Mitra said.

Strategic focus and industry impact

Mitra emphasized the shift from a cost-centric approach to a value-driven proposition. "Cost arbitrage factor, driven by manpower, is going to be seriously impacted. It will be driven by values. We need to move from a cost-driven proposition to a value-driven proposition," he stated.

The startup will operate in the US and India and focus on sectors like manufacturing, retail, and sportstech.

Innovative approaches and product offerings

The company plans to innovate beyond conventional models, focusing on short language models that deliver substantial value in factory outputs.

Mitra explained, "Everyone will not develop chatGPT models. It will cost a huge amount of money. Our focus will be on short language models and delivering value in factory output."

He added that the firm aims to share in the value of outcomes that the AI model achieves, highlighting a future where the tech industry's focus shifts from resource cost to the value delivered.

Productivity enhancement and market strategy

Asserting a productivity-centric approach, Mitra remarked, "I have no issue if a coder is using AI. I don't want to challenge his intellect but look at enhancing productivity. Every industry will use AI for value addition and improve productivity."

His go-to-market strategy includes targeting SaaS platforms and companies with revenues under USD 2 billion, aiming to enhance their operational efficiencies through AI.

Mitra's move comes after his tenure at Tech Mahindra, bringing a wealth of experience and a clear vision for his AI venture that promises to redefine industry standards and foster innovation in the tech space.