Fractal Analytics Proposes INR 150 Cr Project to Build Multimodal Medical AI Model under IndiaAI Mission

This proposal follows the company's broader push to develop India's first large reasoning model (LRM), a project announced in March with a total estimated investment of INR 118 crore.

IPO-bound AI startup Fractal Analytics has submitted a proposal worth INR 150 crore (approximately $17.5 million) to the IndiaAI Mission.

The company aims to build a multimodal foundational model tailored for medical applications and is seeking INR 127 crore in government support to cover the compute infrastructure for the project.

Fractal's Chief AI Research and Platforms Officer, Suraj Amonkar, confirmed that the proposed model will be developed over the next 11 months, as per Inc42.

It will be built from the ground up and is expected to deliver state-of-the-art performance across both vision-language tasks and complex medical reasoning.

According to Amonkar, the model will have 8 billion parameters and is expected to perform on par with significantly larger models.

"We have proposed a grounds-up built multimodal model that should give state-of-the-art performance on vision-language tasks as well as specialized medical tasks," he said. The model aims to expand the scope and accuracy of Fractal's existing medical AI capabilities.

Part of Broader Vision to Build India's First Large Reasoning Model

This proposal follows the company's broader push to develop India's first large reasoning model (LRM), a project announced in March with a total estimated investment of INR 118 crore.

For that initiative, Fractal plans to contribute INR 42 crore from its own funds while seeking INR 76 crore in capital support from the central government under the IndiaAI Mission.

Fractal had earlier launched "Vaidya," a multimodal medical assist model, in August 2023. The model was designed to handle complex queries in the medical domain and compete with leading global models in the space.

Founded in 2000 by Srikanth Velamakanni, Pranay Agrawal, and Ashwath Bhat, Fractal provides AI and advanced analytics services to Fortune 500 companies.

The company became a unicorn in 2022 after raising $360 million from TPG Capital and has raised $685 million in total funding so far.

Fractal is reportedly targeting a $500 million IPO with an estimated valuation of $3.5 billion, although the listing is yet to materialise.

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