India’s AI ecosystem continues to attract strong investor interest, with two Bengaluru-based startups — Companion Labs and Gushwork — collectively raising $11.5 million in fresh funding to scale AI-driven consumer and enterprise platforms.
The funding highlights growing momentum across both AI-powered entertainment for vernacular audiences and AI-driven B2B marketing automation.
Companion Labs Raises $2.5 Million to Build Vernacular AI Entertainment
Consumer AI startup Companion Labs has secured $2.5 million in seed funding led by Peak XV’s Surge, with participation from All In Capital, UntitledVC, DeVC, and several angel investors.
The announcement comes shortly after the company’s participation at the India AI Impact Summit 2026 in Delhi, where it was featured at the Impact AI PitchFest.
Building AI-Native Entertainment for India’s Vernacular Internet
Founded in early 2025 by Akshay Jhanwar and Ajit Pol, Companion Labs is focused on creating AI-powered, character-driven entertainment experiences tailored to India’s linguistically and culturally diverse audiences.
Operating at the intersection of artificial intelligence and entertainment, the startup enables users to explore alternate lives, careers, and aspirations through interactive AI-generated narratives. The platform treats AI not merely as a utility tool but as a creative medium for immersive storytelling.
Companion Labs is building its products specifically for Tier 2, Tier 3, and Tier 4 audiences, with support for vernacular languages such as Tamil, Telugu, Gujarati, Punjabi, Marathi, and Bengali.
The fresh capital will be deployed toward product development, AI capability enhancement, and refining the platform as it works toward achieving product-market fit.
Over the long term, the company aims to establish a new category of AI-native entertainment designed specifically for India’s vernacular internet users.
Gushwork Raises $9 Million to Scale AI-Driven B2B Marketing
In a separate funding development, Gushwork, an AI-powered B2B marketing platform, has raised $9 million in a round led by Susquehanna Asia VC, with participation from Lightspeed, B Capital, Seaborne Capital, Beenext, Sparrow Capital, and 2.2 Capital.
The startup had previously raised $2.1 million in pre-seed funding in July 2023, led by Lightspeed.
AI-Powered SEO for Businesses
Founded in 2023 by Nayrhit Bhattacharya and Adithya Venkatesh, Gushwork helps small and medium businesses (SMBs) and manufacturers acquire customers through AI-assisted search engine optimization.
The platform combines generative AI with human expertise to ensure that client websites are recommended when buyers search on platforms such as Google, ChatGPT, and Gemini.
According to the company, more than 300 businesses globally are currently using its platform, with another 800 on its waitlist.
Gushwork claims that 80% of customers experience up to a 500% increase in website impressions and a 50% rise in inbound leads within 60 days of deployment.
On average, clients begin receiving 10–15 qualified sales inquiries per month by the third or fourth month. This performance typically translates into $30,000–$50,000 in ROI from a monthly spend of $1,500–$2,000.
Expansion Plans
The fresh funding will be used to strengthen product capabilities, improve the accuracy of AI agents, expand engineering teams, and accelerate go-to-market efforts.
Currently operating on a subscription-based model ranging from $800 to $2,500 per month, Gushwork plans to introduce performance-linked pricing alongside its subscription plans in the future.
India’s AI Ecosystem Gains Momentum
The back-to-back funding rounds for Companion Labs and Gushwork reflect the expanding scope of AI applications in India — from vernacular entertainment and immersive storytelling to performance-driven B2B marketing automation.
While Companion Labs is focused on redefining consumer AI experiences for India’s diverse linguistic landscape, Gushwork is leveraging generative AI to transform how businesses generate demand and visibility online.
Together, the $11.5 million funding activity signals continued investor confidence in India’s AI-driven startup ecosystem across both consumer and enterprise segments.
Ruchi Kumar is the associate editor at Entrepreneur News Network and TVW News India, where she leads editorial strategy, brand storytelling, and startup ecosystem coverage. With a strong focus on innovation, business, and marketing insights, he curates impactful narratives that spotlight India’s evolving entrepreneurial landscape.