Peak XV's Surge program leads Companion Labs' $2.5 million fundraising effort
Companion Labs Raises $2.5 Million to Build AI-Driven Interactive Entertainment
Consumer AI startup Companion Labs has raised $2.5 million in a funding round led by Peak XV Partners through its early-stage accelerator programme Surge.
The funding round also saw participation from All In Capital, Untitled Ventures, DeVC, along with several angel investors.
The company said the fresh capital will be used to accelerate product development, strengthen AI capabilities and refine its offering as it works towards achieving product-market fit.
Founded by Akshay Jhanwar and Ajit Pol, Companion Labs is building an AI-driven storytelling platform that allows users to explore alternate lives, careers and ambitions through interactive narratives.
Currently in beta, the platform features around 25 interactive stories where users play the main character while AI generates and powers supporting roles, creating a dynamic storytelling experience. The startup plans to roll out the app in the first week of April, Jhanwar said.
“What we have seen over the last decade is that the digital entertainment experience has not evolved meaningfully. With technologies such as AI, the entire stack is now being reset,” Jhanwar told ET.
The fundraise comes as interactive and short-form content formats gain popularity, driven by changing consumer habits and shrinking attention spans.
Jhanwar said the company is targeting strong user retention, aiming for around 50% of users to remain active after six months, which would make scaling the platform easier.
While AI powers the interactions, the stories are currently written by human creators. The startup is also focusing on vernacular languages such as Tamil, Telugu, Gujarati, Punjabi, Marathi and Bengali, targeting young, digitally active audiences across India.
“This is a new form of entertainment. Over the next five to ten years, we expect 150–200 million people to consume this format two to three times a week,” Jhanwar said.
