AI Film Studio TakeTwo Secures Funding at 100-Crore Valuation in Pre-Seed Round

In a major inflection point that could alter the country’s filmmaking technology and increase the market share of Indian production ventures on a global scale, TakeTwo, an AI-native film studio specialising in high-end visual storytelling, has announced that it has secured fresh capital at a Rs. 100 crore valuation in its pre-seed round. The investment round features participation from US-based Afore Capital, recognised as the world’s largest pre-seed venture firm, and Canada’s Inovia VC.

The company’s founders, Rudresh Upadhyaya (CEO) and Raghav Katta (CTO), recently emerged from Y Combinator’s AI Startup School and have quickly established the company as a critical technology partner for India’s film industry. TakeTwo functions as a full-stack studio, assisting directors and production houses in executing complex VFX-heavy sequences, stylized inserts, and surreal environments at a fraction of traditional costs. This puts it far ahead of SaaS in this business, as TakeTwo has deep creative understanding along with AI expertise. 

“Our objective is to bridge the gap between cutting-edge AI research and the rigorous demands of professional cinema. This valuation is a testament to the immediate value we are providing to filmmakers who need to scale their visual ambitions without the constraints of traditional VFX timelines and budgets. With the support of Afore Capital and Inovia VC, we are poised to expand our technical and creative footprint across India and global markets,” said Rudresh Upadhyaya, Co-founder & CEO of TakeTwo.

India’s media & entertainment market was valued at $30 billion in 2024 and is projected to reach $48 billion by 2030, a CAGR of about 9.8% over 2025-30. The global AI video market was estimated to be around $3.86bn in 2024 and is projected to reach $42.3bn by 2033, at a CAGR of 32.2%, according to a report by Grand View Research. Locally, India’s animation and VFX segment is expected to touch $2.2 billion by 2026, according to industry reports. TakeTwo aims to capture this growth by treating AI as core infrastructure rather than a peripheral novelty.

TakeTwo was born in a small shared room during Y Combinator’s AI Startup School, where co-founders Rudresh Upadhyaya (CEO) and Raghav Katta (CTO) were trying to save on rent while searching for their next big idea. Both brought deep experience from the startup ecosystem and a long-standing love for cinema. Late-night conversations quickly moved from generic AI concepts to real filmmaking constraints - soaring VFX costs, complex shots, and the pressure to deliver scale under tight budgets.

TakeTwo blends AI and live action, with outputs designed to flow into standard grading and editing workflows, making it easier for filmmakers to integrate AI-driven material into mainstream productions.

The startup’s emergence comes at a time when the Indian film industry is grappling with escalating production budgets and the increasing demand for high-quality visual effects. Currently, TakeTwo is already collaborating with several leading Indian directors to deploy AI-driven material into mainstream cinematic productions. The founders intend to position TakeTwo as the primary infrastructure for the next generation of storytelling. By treating AI as core infrastructure rather than a peripheral tool, TakeTwo allows filmmakers to achieve high-fidelity visual IP with greater flexibility and reduced overhead.

The company has both a B2B and a B2C approach. This means both big production houses as well as independent filmmakers can have access to this technology. The idea is to enable creators to achieve their vision without the constraints of budget and expertise. While most of the models used by TakeTwo are currently APIs, the company soon plans to deploy its own custom AI agents as well. In this aspect, both founders have a big advantage due to their proximity with the film industry. The Indian film industry, thanks to its size and complexity, is a massive treasure trove of data that can be used to train AI. 

The capital infusion will be deployed to develop TakeTwo’s technical infrastructure further and scale its team of creative technologists. As the studio continues to embed its AI-enabled pipelines into mainstream projects, it aims to become the industry standard for AI-assisted cinema, providing a seamless layer of technology that orchestrates complex creative outputs behind the scenes.