AI startup Entropik, which seeks to decode the complex human emotion through the power of AI, has raised INR 59.90 crores in a fresh funding round led by Flacon Edge’s India focused fund Alpha Wave incubation. Existing investors Bharat Innovation Fund and Parampara Capital also participated in the round.
This is the maiden funding round for the Bengaluru based startup since 2018 when it secured $1.1 Mn funding as part of the series A round that was led by Bharat Innovation and Parampara Capital. Previously, the AI startup had raised $200,000 from two HNI investors as part of the seed funding round in 2016.
As per regulatory filings accessed by Techpluto, for carrying out the proceedings of the latest funding round Entropik issued total 6,138 Series A Compulsorily Convertible Preference Shares (series A CCPS) of face value of Rs 100 each at a premium of Rs 97,499,35 to Alpha Wave, Bharat Innovation Fund and and Parampara Capital.
Alpha Wave has been allotted 3845 shares for its INR 37.52 crores, Bharat Innovation has been allotted 1909 shares for its contribution of INR 18.63 crores and Parampara Capital has been issued 384 shares for its INR 3.74 crores contribution.
Entropik has disclosed in its regulatory filings that the latest funding round was necessitated to meet company’s funding requirements. However, the company did not elaborate about its funding requirements in the filings.
Notably, this is probably among Flacon Edge’s first big ticket investment in India after the New York investment firm raised $300 Mn India focused fund earlier this year. The fund was named as Alpha Wave Incubation. As per reports, few months back Entropik was equally holding talks with Sequoia Capital for seeking investment but these talks apparently seems to have fizzled down.
In a separate development, Entropik’s co-founder & Head of Engineering Bharat Shekhawat Singh has resigned from the company’s board of directors team, according to the regulatory filings. In the company’s regulatory filings, Singh cited “certain preoccupation” as the main reason for his resignation from the company’s board. Entropik’s management has duly accepted his resignation.
Singh’s exit has coincided with the entry of new director in the form of Ashwin Raguraman, founding partner, Bharat Innovation Fund. Since Bharat Innovation Fund is one of the largest stakeholders in the company, Raguraman’s appointment doesn’t come as a surprise.
Incorporated in 2016, Entropik falls in the niche category of Emotional AI that aims to tap into the complicated world of human emotions and simplify it to the extent that it can be used for the betterment of products & services. The company claims Intel, Myantra, Accenture and Vodafone among its many high profile customers.
Apart from India, the company also boasts a presence in Southeast Asia and the American market.