Mugafi raises $3 Mn in Seed funding

Mugafi, an AI-led company working in tech and entertainment, has raised $3 million in a seed round from institutional and individual investors. The round was led by StartupXseed, Auxano, Proneur, MarsshotVC (Razorpay founders’ fund), and BeyondVP. WeFounderCircle also helped bring the round together.

With the new funding, Mugafi plans to improve its technology, enter new markets, and hire more people to grow its work. The team also plans to build tools that make content creation possible for more storytellers.

Mugafi is developing a suite of AI tools that support creators in working more quickly, exploring new ideas, and producing stories. The platform serves writers, filmmakers, studios, and producers by increasing output, streamlining processes, and enabling new directions for content creation.

At the core of Mugafi’s platform is Ved, its AI tool that works with storytellers to create ideas, build plots, develop characters, and write dialogue. Since its launch, Ved has helped create over 500 original projects, and Mugafi says it plans to build a library of over 200,000 characters in the next two years.

“We’re at a tipping point in how stories are made,” said Vipul Agarwal, Founder & CEO of Mugafi. “At Mugafi, we’ve always believed that AI should amplify creativity, not replace it. Our goal is to empower storytellers—help them break barriers, accelerate their process, and create magic on screen.”

Along with building its technology, Mugafi has built a network of creators. It has helped over 10,000 writers develop original projects using Ved and support from mentors. The company has worked with platforms and studios like Excel Entertainment, Stage, Spotify, Meta, and others to bring new storytelling formats to audiences. Its AI-made characters are already being used in films, short films, games, podcasts, and more.