Former Tech Mahindra Executive Launches AI Startup Targeting Manufacturing, Retail, and Sports Technology

• ByStartupStory     |    April 29, 2024

Jagdish Mitra, the former head of Tech Mahindra’s India business, has announced the formation of a new AI startup, focusing on enhancing productivity in the manufacturing, retail, and sports technology sectors. The company, which remains unnamed, plans to commence operations within the next three months, with a robust initial investment of Rs 65-80 crore (approximately USD 8-10 million).

Mitra, who was previously in contention for the CEO role at Tech Mahindra following CP Gurnani’s resignation, aims to steer the new venture away from traditional cost arbitrage models. Instead, the focus will be on delivering substantial value through AI technology. “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,” Mitra stated.

While the company will operate from both the US and India, it aims to revolutionize factory outputs through specialized AI models rather than developing comprehensive solutions like ChatGPT. Mitra highlighted the potential for AI to share in the value of the outcomes it generates, a shift from focusing merely on the cost of developing AI models.

The startup will use AI to boost productivity, tailoring its offerings to firms with a revenue of less than USD 2 billion. Mitra emphasized that the use of AI by coders and other professionals should not be seen as a challenge to their intellect but as a tool to enhance their productivity. The company’s go-to-market strategy will include a Software as a Service (SAAS) model, which promises to be a strategic move in reaching a wide range of businesses efficiently.

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