Rajesh runs a textile factory in Surat. By 9 AM, he's already handled 3 issues: delayed fabric delivery, missing worker, angry customer complaint. He does what millions of other MSME owners do everyday - everything.
This is the reality for 63mn Indian MSMEs employing 500mn+ workers (> than the entire EU population btw)
They're not failing due to a lack of ambition and/or workers. The problem is more fundamental.
Our (evolving) thesis for AI in India 🧵
This is the reality for 63mn Indian MSMEs employing 500mn+ workers (> than the entire EU population btw)
They're not failing due to a lack of ambition and/or workers. The problem is more fundamental.
Our (evolving) thesis for AI in India 🧵
Let’s start with data. Indian workers produce $7k annually vs $80k in developed economies. Put the same worker in an MNC with proper project management and their productivity would easily triple.
The bottleneck is often mistaken to be capability, but it truly is system design.
The bottleneck is often mistaken to be capability, but it truly is system design.
In the west, 15-20% of workforce are these planners/coordinators - the "orchestration layer" as we’d like to call it, that takes care of:
- is this the right work?
- how do we sequence better?
- what should we build next?
In India, this entire layer collapses onto the owner.
- is this the right work?
- how do we sequence better?
- what should we build next?
In India, this entire layer collapses onto the owner.
To put it in perspective: We have abundant workforce, but lack workflows. We have people who execute well, but not enough who design WHAT to execute.
We have hands to build and vision to dream, but we're missing the crucial middle layer. And tech hasn’t been a failure so far..
We have hands to build and vision to dream, but we're missing the crucial middle layer. And tech hasn’t been a failure so far..
Traditional tech has digitised our Indian businesses beautifully. ERPs track inventory, apps coordinate deliveries, UPI alone processes 9.3B+ monthly transactions.
But software only records what happened yesterday. It can't design what should happen tomorrow.
But software only records what happened yesterday. It can't design what should happen tomorrow.
This is where we see AI coming in, as the orchestration layer Indian MSMEs always needed.
Eg: In one of our portcos {Mygenie}, when a construction worker says "कल वाले काम के लिए सीमेंट खत्म हो रहा है" (“the cement is running out for tomorrow's work”) -
AI can understand, plan, optimise and suggest next steps, but traditional tech would just log that data.
Eg: In one of our portcos {Mygenie}, when a construction worker says "कल वाले काम के लिए सीमेंट खत्म हो रहा है" (“the cement is running out for tomorrow's work”) -
AI can understand, plan, optimise and suggest next steps, but traditional tech would just log that data.
We like to call this AI layer as the project management layer. And the beauty is that AI can provide this project management at near zero marginal cost.
The same system optimising one construction site can simultaneously help thousands. Sophisticated planning can become accessible even to businesses on thin margins, i.e India’s MSMEs.
The same system optimising one construction site can simultaneously help thousands. Sophisticated planning can become accessible even to businesses on thin margins, i.e India’s MSMEs.
Over the next few weeks, I’d love to showcase more of this thesis.
For now, we wrote a longer piece on it that you can read, here:
goodcapital.vc/gc-blog/ai-the…
For now, we wrote a longer piece on it that you can read, here:
goodcapital.vc/gc-blog/ai-the…
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