Demoverse Raises $600K in Pre-Seed Funding Led by Lumikai

Khushi Jain
September 22, 2026

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 through its Pixels programme, with participation from UAE-based investor-operator Marlan and a group of angel investors.

Demoverse plans to use the newly raised capital to build its design community, strengthen its consumer application and expand into the US market, founder Akshay Mehta told Entrackr during an interaction.

Founded earlier this year by Mehta, Demoverse is building a platform that enables brands to involve consumers directly in product design and creation. Rather than using consumers only for feedback after a product has been developed, the startup allows 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. This allows brands to identify designs with stronger consumer validation while addressing uncertainty around product development and inventory decisions.

The startup plans to generate revenue through three primary streams. The first is campaign fees paid by brands to run product-design and co-creation campaigns. The second revenue stream will come from commerce, while the third will come from its most active users.

Demoverse also plans to introduce paid participation in larger design challenges and contests across categories.

Fashion is the startup’s initial focus, but Mehta said Demoverse plans to expand into beauty, cosmetics and interiors, and eventually into 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, the startup is also building a consumer-facing application.

Separately, Lumikai founder and managing partner Salone Sehgal 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.

FAQs

1. How much funding has Demoverse raised?
Demoverse has raised $600K in a pre-seed funding round.

2. Who led Demoverse’s funding round?
Lumikai led the round with a $500K investment through its Pixels programme.

3. How does Demoverse’s platform work?
The platform allows brands to involve consumers directly in product design and co-create products using AI-powered design tools.

4. What sectors does Demoverse plan to target?
Fashion is its initial focus, with plans to expand into beauty, cosmetics, interiors and other physical products, including automobiles and buildings.

5. How many closed trials has Demoverse conducted?
Demoverse has conducted around seven closed trials with brands in India.