The funding round was led by Elevation Capital and also saw participation from angel investors, including founders of Ultrahuman, The Souled Store, Mosaic Wellness, and Paytm
Schmooze claims to have attracted over 1 Mn users since its launch in India 10 months ago and plans to roll out new features to woo users
Founded in 2021, Schmooze matches users based on their meme preferences and sense of humour
AI-powered dating platform Schmooze has raised $4 Mn (INR 33 Cr) in its Series A round led by Elevation Capital. The funding round also saw participation from angel investors, including founders of Ultrahuman, The Souled Store, Mosaic Wellness, and Paytm.
The meme-based dating startup plans to use the fresh capital to enhance its AI capabilities, scale up user acquisition efforts and drive growth in the country.
A chunk of the capital will also be utilised for marketing purposes, foraying into Tier II & III cities, and expanding content offerings beyond memes.
Founded in 2021 by Vidya Madhavan and Abhinav Anurag, Schmooze matches users on the dating app based on their meme preferences and sense of humour. The idea stemmed from Madhavan’s personal experience of connecting with her now-husband through a shared sense of humour and memes.
“When I was at Stanford, I noticed how tired people were of the superficial swiping culture. They wanted more than just looks; they craved a connection beyond the surface. And then it hit me—memes are the new language of connection for GenZ,” Madhavan told Inc42.
The latest fundraise comes three years after the startup bagged $3 Mn in seed funding in 2021. At the outset, it catered to users in the US but pivoted its focus to India last year.
Since its launch in India 10 months ago, Schmooze claims to have attracted over 1 Mn users and witnessed 900 Mn meme swipes. The app also claims to have a 3X better ratio of female to male users compared to other mainstream dating sites, with about 30-35% of its users being female.
It also claims that 72% of its chat rooms are two-way active, meaning both users have sent at least one message.
Madhavan said that the startup now plans to further enhance its AI engine and refine its meme-based matching algorithm, which it claims currently analyses over a billion meme interactions to create detailed user personas.
Schmooze also plans to expand beyond memes to other forms of content and is developing features like Roast AI, which simulates conversations with a stand-up comedian, and Rant AI, a digital diary that responds to user inputs, ensuring users have companionship even when they’re not interacting with others.
The app currently shows users 200 memes a day for free, with an option to view 400 memes for INR 49. This cap, as per Madhavan, has helped Schmooze manage costs, maintain quality control, and create realistic user expectations.
The latest fundraise comes at a time when homegrown dating platforms are witnessing renewed interest from investors. Last month, AI-powered dating platform Juleo bagged $2.5 Mn in a strategic funding round from more than 180 angel investors
In July, actress Huma Qureshi also pumped in an undisclosed amount in Kolkata-based dating app flutrr. Meanwhile, established players like Bumble, Hinge, and Tinder continue to mount an effective challenge to new contenders in the Indian online matchmaking space.
As per a report, the Indian online dating market is projected to reach $402.10 Mn in revenue with a user penetration of 6.3% by the end of 2024.
