India’s interactive media and gaming sector is entering a defining decade, driven by rapid technological advancements and a surge in consumer engagement. In a recent discussion with Indian Startup Times, Salone Sehgal, Founder & Managing Partner at Lumikai, shared insights into the evolution of the industry, the fund’s investment thesis, and the opportunities shaping the future of India’s interactive media market.
As India’s first investment fund dedicated exclusively to interactive media, digital platforms and games, Lumikai was established to address a clear gap in the ecosystem. According to Salone, early-stage founders in this sector needed more than capital, they needed investors who understood product, consumer psychology, and the complexities of building interactive experiences. This thesis has enabled Lumikai to build a strong portfolio of 18 companies, marking its significant role in nurturing the next generation of creative-tech startups.
Salone highlighted that India is now at a major inflection point, with the interactive media market projected to reach $30 billion in the next 5-7 years. She identified three structural shifts driving this transformation: the rise of user-generated content, the acceleration of AI-driven development tools, and the growing demand for immersive digital experiences. This convergence, she noted, positions India to become a global force in interactive entertainment.
Outlining Lumikai’s investment strategy, Salone spoke about the frameworks used to evaluate founders and markets. The 5C framework—which assesses clarity, capability, curiosity, conviction, and character—guides the fund’s approach to selecting strong entrepreneurial talent. On the market side, Lumikai relies on the 4T framework, which evaluates team, trends, total addressable market, and traction. Together, these models enable the fund to take high-conviction bets in a category where specialization is critical.
Salone also threw light on their nascent initiative, Pixels, which backs pre-seed founders building in their -1 to 10 journey across interactive media, digital platforms and games. She discussed their new IP, the Lumikai Pixels Blueprint, a strategic guide designed to support early-stage founders across product development, validation, and fundraising. The blueprint, she noted, reflects Lumikai’s mission to uplift creators and equip them with the tools needed to scale effectively in a dynamic and rapidly evolving industry.
Addressing the role of women in venture capital, Salone emphasized the importance of expertise and assertiveness. She encouraged women entering the field to develop deep domain knowledge and to voice their perspectives confidently, underscoring the value of diverse leadership in the investment landscape.
Looking ahead, Salone predicted that by 2030, interactive media will become deeply integrated across sectors including education, commerce, and entertainment. She believes that Indian intellectual property will gain significant international recognition, supported by the rising ambitions of local founders.
For entrepreneurs building in this fast-evolving space, her message was clear: understand users deeply, adopt contrarian thinking when necessary, and stay agile. As the ecosystem undergoes rapid transformation, she noted, the ability to adapt quickly will differentiate enduring companies from the rest.
With leaders like Salone Sehgal and platforms like Lumikai championing innovation, India’s interactive media revolution is poised to shape the global creative economy in the years ahead.
Interview Conducted By Arushi Agarwal
