Bengaluru’s Game State Labs Secures $2 Million Seed Round

In Focus

• Game State Labs AI funding raises US $2M (₹16.7 crore) for scaling personalization tech
• Backed by PeerCapital and Neon Fund to boost AI analytics innovation
• Focused on player behaviour analytics with a privacy-first approach
• Aims for global expansion and commercial rollout by Dec 2025

Bengaluru-based Game State Labs, a data analytics platform specializing in AI personalization for gaming studios, has raised US $2 million (₹16.7 crore) in a seed funding round co-led by PeerCapital and Neon Fund, according to Inc42.
Founded in January 2025 by Aashbir Bhatia, Jagveer Gandhi, and Ashwin Ramakrishnan, the Game State Labs Bengaluru startup is building tools that help gaming companies understand the “why” behind player actions, not just the “what.”

The company currently employs around 10 professionals and aims to use the newly raised funds for talent acquisition, particularly in product development and engineering.

Earlier this year, Paytm exited real-money gaming activities to comply with the new legal framework that governs digital gaming platforms due to the government’s stricter regulations around online gaming.

The startup focuses on the hybrid casual mobile gaming category, intentionally avoiding real-money gaming due to India’s tightening regulations in that space. Its core mission is to help studios personalize player experiences based on behavioral intent while maintaining strict data anonymity.

AI Personalisation That Prioritizes Player Privacy

Game State Labs’ platform analyzes anonymized gameplay actions to uncover motivation patterns and behavioral intent. Unlike traditional analytics tools that depend on personal data, the company ensures all tracking remains free of personally identifiable information (PII).

“We are not just capturing what the player did but also capturing why the player did that, the intent behind the action as well, which has a lot of impact on the downstream AI applications,” cofounder Aashbir Bhatia stated, as per Inc42.

“Real-money gaming has been very important for the Indian gaming sector. But if you zoom out and look at the whole globe, the weightage is much lower. We are focused on hybrid casual mobile gaming,” he further added.

The company is already running pilot projects with select gaming studios and plans to roll out its commercial offering by December 2025. In other news, on July 8, 2025, the Epic Games lawsuit against Samsung officially came to an end, with both companies having agreed to settle the case.

Key Insights From Game State Labs’ Approach:

• Focuses on behavioural intent analytics beyond basic user metrics
• Uses AI-driven personalization to boost player engagement
• Ensures global compliance through strict data anonymization
• Targets the hybrid casual gaming segment for wider reach

India’s Growing Gaming Analytics Market

India’s gaming ecosystem has become one of the world’s fastest-growing digital entertainment markets, fueled by the proliferation of smartphones and affordable internet. Within this landscape, AI-based analytics platforms like Game State Labs are reshaping how studios design, test, and personalize experiences for global audiences.

Game State Labs funded by PeerCapital and Neon Fund, signals a growing confidence among investors in India’s capability to export high-value gaming technology.

What This Means For The Global Gaming Industry

The Game State Labs AI funding round represents more than an investment in one company; it highlights the increasing relevance of AI personalization and behavior analytics in the global gaming economy. As studios seek to understand and predict player motivations, demand for privacy-compliant, intent-driven analytics is expected to accelerate.

By focusing on AI-led personalization and transparent data handling, Game State Labs aims to position itself as a trusted technology partner for game developers worldwide. For investors, this reflects a broader shift toward ethical data innovation where artificial intelligence serves creativity without compromising privacy.