AI Startup PointAI Secures INR 47 Cr for Virtual Try-On Technology

AI startup PointAI, which recently rebranded from Try ND Buy, has successfully closed a Pre-Series A funding round, raising INR 47 crore (approximately $5.3 million). The investment was led by Yali Capital, with participation from notable investors like Lip-Bu Tan, Chairman of Walden International, and Tremis Capital.

The capital infusion is earmarked for enhancing PointAI's product development, expanding its market presence both domestically and internationally, and advancing its core technology. PointAI specializes in creating 'virtual try-on' (VTO) experiences, utilizing proprietary AI to generate realistic 3D body models that allow customers to virtually wear products while shopping online. The company claims its technology renders media files in 1-2 seconds, significantly faster and up to 90% cheaper than many Generative AI alternatives.

Founded in 2018 by Nitin Vats, PointAI has a global footprint with operations in the US, UK, and China. Its client roster includes major e-commerce players and brands such as Flipkart, Aditya Birla Capital, Myntra, and Amazon SPN. The company has raised a total of $10 million to date.

Impact This funding highlights investor confidence in AI-driven e-commerce solutions, particularly in the virtual try-on space. It is expected to foster innovation, improve online shopping experiences, and potentially increase conversion rates for retailers by reducing purchase uncertainty. PointAI's growth could also spur further competition and development within the Indian fashion-tech sector.

Impact Rating: 7/10

Difficult Terms: * **Pre-Series A funding round**: An early-stage funding round for startups that have achieved some initial traction and are seeking capital to further develop their product and business model before a larger Series A round. * **Proprietary parallel AI architecture**: A unique, custom-built artificial intelligence system designed to process data simultaneously on multiple processors, aiming for enhanced speed and efficiency. * **Virtual try-on (VTO)**: A technology that enables customers to digitally 'try on' clothing, accessories, or other items online using augmented reality or 3D modeling, simulating a real-world fitting experience. * **Rendering**: The process by which a computer generates an image or animation from a 2D or 3D model data. * **GenAI (Generative AI)**: A type of artificial intelligence capable of creating new content, such as text, images, audio, or video, based on patterns learned from existing data. * **CAGR (Compound Annual Growth Rate)**: The average annual growth rate of an investment over a specified period of time longer than one year, assuming that profits are reinvested. * **D2C (Direct-to-Consumer)**: A business model where companies sell their products directly to end consumers, bypassing intermediaries like retailers or wholesalers. * **B2B SaaS (Business-to-Business Software as a Service)**: A software delivery model where an application is licensed on a subscription basis and centrally hosted for business clients, delivered over the internet.