Mugafi Secures $3 Mn In Seed Round To Redefine Entertainment With AI-Powered Storytelling

Mugafi, an innovative AI-led company at the intersection of tech and entertainment, has raised $3 million (around Rs 25.5 Cr) in its seed funding round led by StartupXseed. 

Other investors, including Auxano, Proneur Network, Razorpay founders’ venture capital fund Mars Shot Ventures, Beyond Venture Partners, and We Founder Circle, also participated in this round.

The startup will use the fresh funds to improve its technology, hire more people and grow into new markets.

Recently, Mugafi has strengthened its leadership team by appointing Alok Sharma as Chief Creative Officer, Rahul Sarangi as Strategic Business and Content Advisor, Jenil Parmar as Business Head, and Raya Choudhury as Creative Head. 

These hires come as Mugafi expands its original content and IP development efforts. The new leaders bring decades of experience across media, content creation, and business growth, supporting Mugafi’s mission to empower creators and deliver bold, transformative stories.

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“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."

“This investment gives us the fuel to take our ideas to the next level. We’re incredibly grateful for the trust our investors have placed in us, and we’re just getting started," Vipul added.

“We are excited to have invested in Mugafi and Vipul’s vision, which seamlessly blends passion with cutting-edge technology. Mugafi’s innovative approach and its commitment to reshaping the future of storytelling on a global scale—through the creation of scalable IPs and a redefined content production process—make it a strategic investment with immense potential for worldwide growth and industry-wide transformation.” said Ravi Thakur, Co-Founding Partner at StartupXSeed.

About Mugafi

Founded in 2020 by Vipul Agrawal, Mugafi uses AI to help filmmakers and writers create content online. Its main product, an AI tool called Ved, acts like a co-writer, helping users come up with ideas, build plots, create characters, and write dialogues.

Ved is at the core of what Mugafi offers. Since launch, it has helped develop over 500 original stories. Mugafi says it plans to build a library of over 200,000 unique characters in the next two years.

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