Funding · AI & Deep Tech

Companion Labs raises $2.5 Mn seed round

By Startup Enthusiast · 26 February 2026

What they do

Companion Labs builds AI-powered interactive experiences for alternate lives and careers

It raised $2.5 Mn in seed funding led by Peak XV's Surge, with All in Capital, DeVC, and UntitledVC participating

The company targets young users in tier II–IV Indian cities with vernacular-language AI bots

Companion Labs raised $2.5 Mn in a seed round.
The round was led by Peak XV's Surge.
Participating investors included All in Capital, DeVC, and UntitledVC, along with angel investors.
The company will use the funds to accelerate product development and AI capabilities.
It aims to refine its product toward product-market fit.
The app is expected to roll out in the first week of April 2026.
The long-term vision is to have 150–200 million people using the format 2–3 times a week in 5–10 years.

83% of Gen Zs believe they could develop a meaningful connection with a chatbot, according to a Joi AI survey.
75% of Gen Zs said AI companions could completely replace human relationships, per the same survey.
India's GenAI ecosystem raised over $1.5 Bn between 2022 and Q1 2025.
India's GenAI market is expected to become a $17 Bn opportunity by 2030.

Companion Labs builds AI-powered interactive experiences for alternate lives, careers, and aspirations.
Its flagship product is Mello, an AI app with 12 unique AI bots.
Mello bots converse in English, Tamil, Telugu, Gujarati, Punjabi, Marathi, and Bengali.
The app is in beta with about 25 interactive stories where the user is the main character and AI powers supporting roles.
Stories are currently written by human creators.
The target audience is young, digitally active users in tier II, III, and IV cities of India.
Mello had over 5,000 downloads on Google Play Store as of July 2025.

Peak XV's Surge (lead) — Peak XV's Surge is the early-stage program of Peak XV Partners, a venture capital firm.
All in Capital (participated)
DeVC (participated)
UntitledVC (participated)

Product: AI-powered app (Mello) allowing users to interact with unique AI bots conversing in multiple Indian languages
Customers: Customers from tier II, III and IV cities seeking entertainment and narrative exploration
How it makes money: Consumer app with monetization through interactive AI experiences
What sets it apart: AI-powered characters and narratives tailored for vernacular audiences across India's diverse cultural landscape