Mirana Toys has closed a major Series A financing round. The company that specialises in AI-powered robots, Augmented Reality (AR)-powered remote-controlled vehicles, and different educational toys was able to raise ₹57.5 crore (approximately $6.9 million). The huge capital inflow will help fast-track the strategic objectives of the company, which involve increasing its production capacity, as well as actively entering the international market.

Capital infusion and operational expansion

The major funding obtained in this Series A round is specifically to be used in areas of major growth and operation, and specifically to increase production capacity to match fast-growing market demand. A significant portion of the capital will go into developing a new and contemporary facility. The proposed facility will be installed with the latest manufacturing equipment, such as sophisticated injection-moulding and die-casting equipment. These advanced tools will play an important role in ensuring that Mirana is able to manufacture quality and complex elements internally, thereby facilitating efficient and high-volume manufacture of products.

Arkam Ventures led the funding round, which indicates that the investors have high confidence in the product portfolio of Mirana Toys and its vertically integrated model of operations. To build on this confidence, the current investors, such as well-known venture capital funds Accel and Info Edge, and Riverwalk Holdings, provided strong support in the Series A round. The combination of new leadership in the investment round, plus the support of existing backers, gives Mirana Toys an excellent financial base to implement its ambitious expansion strategy in the fast-changing toy industry. This funding round is a turning point in the history of the company since it is moving into a significant growth phase.

Besides the basic manufacturing facilities, the company will create its own in-house packaging lines as part of the new factory facility. The idea behind this shift towards vertical integration, which includes the whole process of manufacturing up to the final wrapping of the product, is to simplify the supply chain, eliminate the reliance on third-party services, and ensure the strict control of quality of the end-packaged good. This growth in operations is clearly planned to greatly enlarge the total production capacity of Mirana Toys to effectively meet the ever-growing domestic demand that is ever-growing and the major demand of the exporting markets. The new capital, in addition to operational improvements, will also be used to strategically expand the size of the design and sales teams of the company to produce the required human resources needed to pursue and conquer the international growth opportunities.

Innovation and global expansion

Mirana Toys is a company established by Devansh Sharma and Ravi Yadav in the year 2021. Since its establishment, the company has developed a fully vertically integrated operating system. This integrated strategy implies that the company controls all the key phases of the product lifecycle. This all-inclusive control is not only a development of conceptualisation, but includes sophisticated 3D design and prototyping, to more intricate electronics incorporation. The process also includes tooling, accurate assembly and concludes with a strict compliance and quality control system to ensure all products are of the highest standards.

The product range of the company demonstrates its desire to combine sophisticated technology with learning and entertaining playing activities. Its portfolio is focused on several core areas, including sophisticated AI-based robots, AR-based remote-controlled vehicles and cars that integrate the real and digital world of play, and broad-based STEM kits and educational toys, meant to encourage learning via interaction.

Such an innovative product mix and the ability to control the manufacturing process are some of the contributing factors to the success of the company and its capability to interest major investors. The quality and the attractiveness of these products are also justified by the fact that toys produced by the company are currently being used by over one million children across the globe, which confirms the product-market fit and high global reach that Mirana Toys has managed to attain within such a short time frame.

Mirana Toys has developed a strong retail and online presence in its domestic market of India. This broad accessibility is reflected in the extensive distribution system of the company, with physical availability of products in more than three thousand retail outlets in the country. This intensive physical presence is enhanced by an extensive digital strategy, which means the product availability in all leading online e-commerce and quick-commerce platforms that serve the Indian consumer.

As the indicator of its strategic position and brand awareness, Mirana Toys has already established a valuable licensing relationship with a number of major Indian automobile brands, thereby enabling it to develop unique, branded products that directly target the domestic consumer market. The vision of the company has a global nature. Mirana Toys has already developed a good export record with foreign sales, especially to the United States, which already amounts to approximately 40% of its total demand.

Based on this current success, the company is renewing efforts towards further international expansion. It now has a large order pipeline in the US and European markets. In addition to these historical export markets, Mirana is actively involved in negotiations on forming a strategic partnership with distributors in the Middle East and Africa, which means that it is pursuing a comprehensive approach to establishing its presence on the global market and making sure that toys produced by its Indian facilities reach children in various markets across the globe.

Conclusion

The close of the ₹57.5 crore Series A round of funding led by Arkam Ventures is a transformative inflexion point for Mirana Toys. The capital inflow will instantly boost the production capacity of the company by installing the latest state-of-the-art factory and the use of state-of-the-art in-house production and packaging lines. This action reinforces its central vertical integration concept and allows the company to effectively scale its manufacturing of successful AI-based, AR-based, and educational toys.