Indian AI startup Demoverse has raised $600,000 in a pre-seed funding round led by venture capital firm Lumikai. 

The startup is building a platform that allows consumer brands to involve customers directly in product development, giving users a role in designing products before they reach the market.

Lumikai invested $500,000 through Pixels, its pre-seed programme focused on interactive platforms. UAE-based investor-operator Marlan and a group of angel investors also participated in the round. 

Demoverse plans to use the fresh capital to turn its early partnerships with Indian consumer brands into paid campaigns, strengthen its go-to-market operations in the US and expand its community of consumer creators.

Founded by Akshay Mehta, Demoverse uses AI to connect brands and consumers during the product creation process. Brands can upload product concepts and define which elements users can change. Consumers can then use AI tools to modify or refine those designs while staying within the brand’s guidelines.

The wider community can vote on the designs, allowing brands to get an early view of consumer preferences before committing to production. Consumers whose ideas are selected for commercial products can also earn royalties when those products are sold.

Demoverse is initially focusing on the fashion industry, where brands often face challenges in predicting demand and managing excess inventory. The startup plans to expand into beauty, consumer packaged goods and other categories as its platform grows. It has already conducted early trials with Indian consumer brands and plans to convert some of these partnerships into commercial campaigns.

The company describes its model as a move from user-generated content to “user-generated products”. Instead of simply creating social media content around a brand, consumers can directly influence what the brand produces.

The startup was founded by Mehta, who has previously worked across investment, consulting and operating roles at Bain, Z47, Asia Alternatives and the UAE’s Royal Group. Demoverse is also part of NVIDIA’s Inception programme for technology startups.

With the new funding, Demoverse aims to expand its brand network and consumer community while testing whether AI-powered co-creation can become a new way for brands to understand demand and develop products with customers.

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