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Tech: Vexoo Labs builds factual AI for MSMEs

Fiinews by Fiinews
June 23, 2025
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Most AI tools are built for showcase, says Kumar

As hallucination-prone models dominate headlines, a homegrown deep-tech company Vexoo Labs is quietly building the first factual Artificial Intelligence (AI) system for Bharat’s manufacturing backbone especially for the Micro, Small, and Medium Enterprises (MSMEs) in Tier-II and Tier-III cities.

Ajay Kumar, Senior Business Leader, AI Evangelist and a Board Advisor at Vexoo Labs, says “Vexoo Labs is solving the right problem — building intelligence you can trust, in environments where it matters the most https://www.superai.com/.”

As someone who has worked extensively in threat intelligence, Kumar pointed out that “the focus on factual accuracy is both rare and crucial” meity.gov.in.

Most AI tools today are built for showcase, not for reliability, according to Kumar.

In the industrial alleys of Rajkot, the looms of Tiruppur, and the machining units of Coimbatore, India’s small and mid-sized manufacturers are facing a silent crisis, he noted https://www.bseindia.com/.

“It’s not rising input costs or labor shortages alone — it’s the growing complexity of data, and the absence of any reliable AI system to help make sense of it,” Press Trust of India had Kumar as saying on the sidelines of Super AI, a mega exhibition and conference held June 18-19 https://www.nseindia.com/ .

Kumar elaborated, “Despite the global boom in artificial intelligence, most systems on the market today suffer from a dangerous flaw: hallucinations — confidently delivering factually incorrect information. For India’s MSMEs, where decisions have direct operational and financial consequences, this isn’t just a flaw — it’s a liability.”

Even at global AI showcases like SuperAI, dozens of platforms claim to be transformative. But behind the gloss lies a glaring truth — most are built atop general-purpose language models that continue to hallucinate, he noted, adding, “While the world chases scale and speed, accuracy has quietly fallen through the cracks https://indiaai.gov.in/.”

Vexoo Labs’s reasoning-first architecture, compact models, and local execution capabilities make it especially relevant for Tier-II and Tier-III cities, where India’s manufacturing momentum truly lies, Kumar stressed.

The company’s focus on trustworthy AI for real-world India is already resonating across enterprise and public sector conversations.

“We didn’t set out to build a shinier chatbot. We set out to solve the core flaw in AI itself — hallucinations,” added Aditya Vardhan, Co-Founder of Vexoo Labs. “Manufacturers in Ludhiana, Surat or Bhiwadi shouldn’t have to rely on guesswork. They deserve AI that answers clearly, correctly, and fast — and that’s what we’re building at Vexoo Labs.”

Vardhan underscored, “As India eyes its US$5 trillion economic goal, the real digital leap may not come from big cities or billion-parameter models — but from trust-first intelligence deployed deep within India’s industrial backbone.” Fiinews.com

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Fiinews.com features through news articles on business opportunities in the Indian market for the benefits of foreigners. It is also a platform for international businesses to showcase through elaborate articles on their products & services to the Indian consumers and corporations exploiting industrialisation of the country.

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