TrueFan AI Raises $10M Series A for Global Expansion

Gurugram-based enterprise AI startup TrueFan AI has successfully closed a $10 million Series A funding round, led by Baring Private Equity Partners India and Z3Partners. The round also saw participation from IAN Alpha Fund and 3Lines Venture Capital.

The newly acquired capital is earmarked for significant strategic initiatives, including the expansion of TrueFan AI’s enterprise customer base, entry into new markets across Southeast Asia and the Middle East, and strengthening its presence in the United States.

“Our key investment priorities are distribution and geographic expansion. We aim to grow our monthly client base while strengthening our presence in India and expanding into nearby markets,” said Nimish Goel, co-founder of TrueFan AI.

Initially founded in early 2020 as a celebrity engagement platform, TrueFan AI has pivoted to focus on enterprise AI. The company has relaunched its generative AI video platform, specializing in creating hyper-personalized videos for brands featuring celebrities. This strategic shift began in early 2024, with Zomato as its first enterprise client. Since then, TrueFan AI has onboarded over 100 enterprise clients across various sectors, including BFSI, healthcare, consumer goods, and media. Notable clients include Bajaj Finance, HDFC Bank, Axis Max Life Insurance, Cipla, BharatPe, and Goibibo.

The startup reports a substantial 11x revenue growth over the past 20 months. For the fiscal year ending March 31, 2025, TrueFan AI recorded a 131.1% revenue increase, reaching ₹17.1 Cr from ₹7.4 Cr in FY24. Concurrently, its net loss narrowed by 36.7% to ₹8.8 Cr, down from ₹13.9 Cr in FY24, according to data from Tofler.

“Our burn today is just 10% of our revenue and we have grown more than 3X in the last financial year,” Goel stated.

To date, TrueFan AI has raised a total of $21 million. The company operates in the AI-led video creation market, competing with players such as VideoVerse, InVideo Enterprise, and Dubverse.

TrueFan AI’s evolution began with a focus on connecting fans with celebrities. Recognizing the limitations of celebrity availability, the founders invested in video-generation technology, developing a proprietary video foundational model. After building the underlying technology for nearly two years, the startup launched its first celebrity avatar with actor Ranveer Singh in late 2021. It subsequently developed AI avatars for over 150 celebrities.

The broader acceptance of AI-generated content, accelerated by advancements like ChatGPT, reinforced the founders’ belief in the potential of generative AI beyond celebrity engagement. This led to the strategic pivot to enterprise customers in early 2024.

Looking ahead, TrueFan AI is focusing on interactive video, envisioning a future where video evolves into a real-time conversational interface powered by AI avatars. The company is developing real-time AI video agents for use cases in customer support, sales, onboarding, and product discovery.

With a team of over 110 employees and the capacity to generate up to 500,000 videos per minute, TrueFan AI aims to position itself as a leader in the global video production market, estimated at $900 billion, as enterprises increasingly shift budgets towards AI-led content creation.