Demoverse is an artificial intelligence platform located in Bengaluru. Demoverse has successfully raised $600K in its pre-seed funding round. Lumikai led the investment round with a $500K injection as part of its dedicated pre-seed program, Pixels. Lumikai is a gaming and interactive media-focused venture capital firm. The capital injection represents a key initial step as the company looks to expand its technology infrastructure and footprint.

Capital deployment and platform architecture

The company will use the proceeds from the homegrown funds to allocate its resources into three major growth categories. Demoverse founder Akshay Mehta explained that the capital will be used to grow the design community, solidify its consumer interaction application, and extend its presence in the United States market. The capital will enable the transformation of existing brand partnerships into active paid campaigns.

Demoverse is an AI-powered product co-creation platform founded earlier this year by Akshay Mehta, which allows consumer brands to directly engage with shoppers in the design and creation journey. 

Before creating Demoverse, Akshay Mehta helped launch the commercial-scale manufacturing plant for satellites in the United Arab Emirates, which inspired him to investigate the possibility of using artificial intelligence to make industrial design more accessible to a wider audience.

The platform is based on a collaborative approach in which the brands create products with consumers instead of selling them finished products. In this approach, brands share a starting point with their users, who can then alter, refine, and build upon the base with integrated artificial intelligence tools. 

After the community votes on the best design direction, brands proceed to commercial production. The partnership of AI-proposed designs and human preferences and community engagement ensures that firms can validate demand and choose product ideas with stronger consumer support, according to Demoverse.

Business model and expansion plans

Demoverse is based on a business to business to consumer model (B2B2C) with 3 primary streams of platform revenue. With fashion being the core entry focus, Akshay Mehta has confirmed that Demoverse plans to expand its application in the adjacent fields. 

Future expansion plans will cover beauty, cosmetics, home decor, and then more complicated physical product categories like cars and structural building. In its first development phase, Demoverse has already shown traction as an operational enterprise in the domestic market. 

The company has successfully delivered approximately 7 closed trials in India with consumer brands. Purplle, a popular beauty e-commerce website, is part of these initial pilots, testifying to the versatility of the platform in online retail environments.

Conclusion

The $600K pre-seed investment from Lumikai is a positive momentum for Demoverse as it aims to revolutionize the conventional product development process with an approach that emphasizes community co-creation powered by artificial intelligence. The startup’s participation with consumers in a more design-centered way than feedback after a product has been launched enables a brand to find a proven way to reduce the risk of inventory and serve consumer needs more effectively. Demoverse is supported by investors such as Lumikai and Marlan to scale its B2B2C model, launch its consumer app, expand its global design community, and pivot into adjacent industries including beauty, interior design, and automobiles.