Demoverse Secures Funding to Enhance Consumer Co-Creation in Product Design
Bengaluru-based AI startup Demoverse has successfully raised $600K in a pre-seed funding round. The investment was led by gaming and interactive media-focused venture capital firm Lumikai, which contributed $500K through its Pixels programme, alongside participation from Marlan, a UAE investor-operator focusing on deep tech, and a number of angel investors.
Plans for Capital Use
Demoverse intends to utilise the funds to enhance its design community, bolster its consumer application, and facilitate expansion into the US market, as detailed by founder Akshay Mehta during an interview with Startup Superb.
Co-Creation Platform Overview
Established earlier this year by Mehta, Demoverse is creating a platform that invites brands to engage consumers directly in the product design process. Rather than treating consumers solely as feedback providers after a product’s development, the startup allows communities to co-create products using AI-driven design tools.
Consumer Engagement in Product Development
According to Mehta, brands will present a concept to their community, enabling collective enhancement of the idea. The platform combines AI-generated designs with human preferences and community involvement, empowering brands to uncover designs that have stronger consumer validation. The goal is to mitigate uncertainties surrounding product development and inventory decisions.
Revenue Generation Strategies
Demoverse is set to generate revenue from three main sources. The first involves campaign fees collected from brands for running product design and co-creation initiatives. The second stream will be sourced from commerce, while the third will derive from the most engaged users, including fees for larger design challenges and contests across various categories.
Future Expansion Plans
While initially focused on the fashion sector, Mehta expressed intentions for Demoverse to branch into beauty, cosmetics, interiors, and eventually other tangible products such as automobiles and architectural concepts.
Current Operations and Collaborations
Demoverse operates on a B2B2C model and has completed about seven closed trials with brands in India, including beauty e-commerce platform Purplle. Alongside its enterprise offerings, the startup is also developing a consumer-facing application.
Industry Context and Investor Insights
In a separate confirmation, Lumikai’s Sehgal indicated that the firm plans to initiate its third fund next year. The consumer co-creation sector in India is rapidly evolving at the crossroads of D2C, community-driven commerce, the creator economy, and product innovation. Notably, Mumbai-based teen self-care brand Sammmm raised Rs 10 crore ($1.2 million) in seed funding led by Fireside Ventures, with contributions from Sauce VC and angel investors. Additionally, BCT Ventures, established as an AI-native consumer brands platform in July 2026, secured Rs 42 crore in seed funding led by 3one4 Capital.