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Bengaluru-based AI-powered product co-creation startup Demoverse has raised $600K in a pre-seed funding round. Gaming and interactive media-focused venture capital firm Lumikai led the round with a $500K investment as part of its Pixels programme, with participation from Marlan, a UAE-based investor-operator focused on deep tech, and a group of angel investors. Demoverse plans to deploy the newly raised capital towards building its design community, strengthening its consumer application and expanding into the US market, founder Akshay Mehta told Entrackr during an interaction. Founded earlier this year by Mehta, Demoverse is building a platform that allows brands to involve consumers directly in the product design and creation process. Instead of using consumers only as a feedback mechanism after a product has been developed, the startup enables communities to co-create products using AI-powered design tools. “Brands will float a concept to their community, and the community will then co-create on top of it,” Mehta said during the interaction. According to Demoverse, its platform combines AI-generated designs with human preferences and community participation, allowing brands to identify designs that have stronger consumer validation. The startup aims to address uncertainty around product development and inventory decisions. The startup plans to generate revenue through three primary streams. The first will be campaign fees paid by brands to run product-design and co-creation campaigns. The second will come from commerce, while the third will come from its most active users. It plans to introduce paid participation in larger design challenges and contests across categories. While fashion is the startup’s initial focus, Mehta said Demoverse plans to expand into beauty, cosmetics, interiors and eventually other physical products, including automobiles and buildings. Demoverse currently operates on a B2B2C model and has conducted around seven closed trials with brands in India. Alongside its enterprise offering, it is also building a consumer-facing application. Separately, Lumikai’s Salone Sehgal, founder and managing partner, confirmed during the interaction that the firm plans to launch its third fund next year. The consumer co-creation segment in India is emerging at the intersection of D2C, community-led commerce, the creator economy and product innovation. Mumbai-based teen self-care brand Sammmm raised Rs 10 crore ($1.2 million) in seed funding led by Fireside Ventures, with participation from Sauce VC and angels. 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.
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