Bengaluru-based AI-powered product co-creation startup Demoverse has raised $600K in a pre-seed funding round led by gaming and interactive media-focused venture capital firm Lumikai.
Lumikai invested $500K in the round through its Pixels programme. The funding round also saw participation from Marlan, a UAE-based investor-operator focused on deep tech, along with a group of angel investors.
The fresh capital will be used to build Demoverse’s design community, strengthen its consumer application and support its expansion into the US market, founder Akshay Mehta told Entrackr.
Demoverse Builds AI Platform for Consumer Co-Creation
Founded earlier this year by Akshay Mehta, Demoverse is building a platform that allows brands to involve consumers directly in product design and creation.
Instead of relying on customers only for feedback after a product has been developed, Demoverse allows communities to participate in the creation process through AI-powered design tools.
The platform enables brands to present a concept to their community, after which users can contribute and develop ideas around it.
Demoverse combines AI-generated designs with human preferences and community participation. The startup believes this approach can help brands identify products and designs that receive stronger validation from potential consumers before they are taken to market.
The platform is also designed to help brands reduce uncertainty around product development and inventory decisions.
Business Model and Expansion Plans
Demoverse currently operates on a B2B2C model and has conducted around seven closed trials with brands in India.
The startup is also developing a consumer-facing application alongside its enterprise platform.
Demoverse plans to generate revenue through three main streams. The first will be campaign fees paid by brands to conduct product design and co-creation campaigns.
The second revenue stream will come from commerce, while the third will focus on its most active users. The startup plans to introduce paid participation for larger design challenges and contests across different categories.
Fashion is currently Demoverse’s primary focus. However, the company plans to expand into beauty, cosmetics and interiors before eventually moving into other physical product categories, including automobiles and buildings.
The startup is also preparing to enter the US market with the newly raised capital.
Lumikai Plans Third Fund
The latest investment also comes as Lumikai continues to expand its investment activity in technology and interactive media.
Lumikai founder and managing partner Salone Sehgal confirmed during the interaction that the firm plans to launch its third fund next year.
Lumikai’s $500K investment in Demoverse was made through its Pixels programme, which focuses on early-stage opportunities in gaming and interactive media.
Consumer Co-Creation Ecosystem Gains Momentum
The consumer co-creation segment in India is still emerging, operating at the intersection of direct-to-consumer brands, community-led commerce, the creator economy and product innovation.
Other startups in the broader consumer ecosystem have also attracted investor interest.
Mumbai-based teen self-care brand Sammmm recently raised Rs 10 crore ($1.2 million) in seed funding led by Fireside Ventures, with participation from Sauce VC and angel investors.
Meanwhile, BCT Ventures, which launched in July 2026 as an AI-native consumer brands platform, raised Rs 42 crore in seed funding led by 3one4 Capital.
With its AI-powered design platform, Demoverse is looking to take consumer participation a step further by bringing communities into the product creation process itself. The startup plans to use its new funding to grow its design community, strengthen its consumer product and expand its presence beyond India.
-By Shivani Solanki
