Krutrim: The Desi ChatGPT?
Bhavish Aggarwal's AI Unicorn and the race to build LLMs for India
And just like that, we got the first unicorn of 2024!
Pretty sure you've seen this news making headlines—Bhavish Aggarwal's AI startup Krutrim, after raising $50 million, has become the FIRST billion-dollar Indian AI company!
What is Krutrim?
Krutrim is a 'made in India' large language model and generative AI platform, akin to OpenAI’s ChatGPT and Google’s Bard. The term "Krutrim" means artificial in Sanskrit, and it comes in both a base model and a pro model. Just like ChatGPT, this primary version can respond to prompts or queries from the public. It boasts the ability to comprehend around 22 Indian languages and generate text in 10 languages, including Marathi, Hindi, Bengali, Tamil, Kannada, and more.
And Krutrim is not alone!
Another company making waves is Sarvam AI, which raised $41 million, marking the biggest Series A funding round in the history of Indian AI startups. They made headlines with the launch of Open Hathi. According to Sarvam AI, their Hindi LLM performs tasks in Hindi as well as, if not better than, GPT-3.5.
In fact, India's LLM race is heating up! Several startups are launching their large language models (LLMs), including Google-backed CoRover’s BharatGPT, Kissan AI’s Dhenu, Indus Project by Tech Mahindra.
But why are AI companies like Krutrim focusing on building Indian language LLMs when we already have ChatGPT?
AI for Regional Languages:
Most Indian people prefer speaking their local languages over English, with Hindi being especially popular. Despite this, most Language Model Models (LLMs) are still built in English, failing to deliver high-quality responses for Indian users.
The Indian LLMs aim to bridge this gap and make Indian language LLMs accessible to a broader audience. For example, Krutrim's platform can understand and process up to 22 Indian languages, with the capability to write and speak in 10 languages. In contrast, ChatGPT can only support 12 Indic languages.
Internet Penetration and the Promise of Tier-2, 3, 4 Cities:
India surpassed 50% internet penetration last year, significantly lower than the 90% rate in the USA. The expansion in English-speaking metropolitan cities has already reached a plateau. The next wave of growth is expected from Tier 2, 3, and 4 cities, as well as rural regions, where regional languages are more prevalent than English. Krutrim is well-placed to tap into this massive user base.
The Economic Impact of GenAI:
Beyond cultural and linguistic customization, genAI's potential to substantially contribute to India's GDP offers a persuasive investment case. According to EY, AI companies could potentially add $1.2-1.5 trillion to India's GDP by 2030. This impact could be even greater if AI were deployed at scale across both public and private sectors.
That's why investors are bullish and are willing to invest in the likes of Krutrim.
Epilogue
Now, as Krutrim steps onto the AI stage, it's like entering a high-stakes game. If it lives up to its big promises and caters to the needs of Indian users, it could be the next big thing in Indian AI.
But, on the other side, if it falters despite the initial buzz, it might be a hiccup in Bhavish's otherwise successful journey. Just to give you the quick backstory: Krutrim AI is Bhavish's third venture, following the hits of Ola Cabs and Ola Electric.
While we're all hoping for another success, diving into AI later in the game brings its own challenges. The unfolding story will tell us whether Krutrim becomes Bhavish's new triumph or throws a curveball into his entrepreneurial tale. Stay tuned!
Product Insight🧠
While ordering from Zepto's 'Explore New Categories' recently, I stumbled upon 'Zepto Cafe' in the 'Explore New Categories.’
This made me curious to find out more about it. So what is Zepto Cafe?
What they are calling cafes are mini cloud kitchens tucked away in dark stores, partnering with popular brands like A1 Samosa, Chaayos, Blue Tokai, and Rachel's Sassy Teaspoon.
Zepto Cafe isn't just a cozy spot; it's a strategic move. Here's why:
Zepto Cafe, despite being a small category, will help boost average order values (AOV) as users are likely to order tea, coffee, and snacks along with groceries. Preparation time of such products at cafes is around 15 minutes, and Zepto will try to bring it down to 10 minutes with time and scale.
It also offers 3x higher margins than FMCG products, expected to help Zepto inch closer to its profitability ambition. The firm currently sees an AOV of Rs 400-450 and said it is growing 40% year-on-year.
And who knows, with their Ops already figured out, they might head in the direction of a cloud kitchen with quicker delivery!
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