Meta Fashion has raised approximately $400K in a pre-seed funding round. The investment was led by Lumikai. Lumikai is a leading venture capital firm well known for its investments in the interactive media and Digital Entertainment sector. Prominent angel investors also joined the round, including Big Bets, the family office of Anton Gauffin, as well as Akshat Rathee and Pratham Mittal. The investment demonstrates an increased confidence in the virtual world and UGC-centric businesses that create assets for virtual environments.

Capital deployment and core virtual business

For its part, the startup has developed a well-defined roadmap for managing the new funds to fast-track its business expansion, according to an official press release by Meta Fashion. The amount raised in this pre-seed round will mainly be allocated to helping scale the operations of its virtual fashion company. 

Among the funds is a major share that will go into expanding and building the original ‘intellectual property’ game titled GlamGirls. In addition, Meta Fashion plans to allocate some of the funds to digitally expand on various UGC platforms, solidifying its digital footprint within major online ecosystems.

The successful funds bring this company to the next level to establish a broader base on which to continue building since its formation. Founded in 2022 by Arjun Goel, Meta Fashion is at the forefront of digital expression, creating and releasing trend-forward digital fashion dresses and accessories for the top virtual platforms like Roblox, Fortnite, and ZEPETO. 

In addition to its virtual business, the company runs a special line of phygital business services directly to consumers. The concept of the phygital business model is working by transforming the virtual bestsellers into actual physical products, creating a connection between digital identity and fashion.

Business operations and demographic reach

The company’s core business is a proprietary artificial intelligence-driven fast-fashion engine tailored for digital assets. The company said that on this platform, AI-powered styling and creation tools work through systematic analysis of live marketplace trends and real-time demand signals. 

Consequently, with that approach, the engine has achieved effective asset discovery, reduced the overall digital garment creation time, and boosted user conversion rates for the different virtual marketplaces. This technology gives the brand the ability to adapt to trends on the fly and replicate the quick fashion manufacturing cycle in the virtual world.

From a business standpoint, Meta Fashion has shown impressive values in its major target environments. The company states it has sold more than 2.5 million virtual fashion units through the Roblox marketplace alone. At a high gross margin of 92% and high sales volumes, this company has achieved gross merchandise values of about $300K. 

This high level of financial efficiency is a testament to the scalability of digital clothing, as there is little to no cost associated with reproducing physical garments. Meta Fashion has already collaborated with some major global brands like Walmart, a retail giant, to transfer their products to the digital space with ease.

In addition to independent digital costumes, Meta Fashion has expanded into online games by creating its dress-up game, GlamGirls. The game entered the beta phase on Roblox at the end of 2025 and already has a very active base of over 100K paying users. 

There is an interesting demographic split of GlamGirls: 75% of users are female, and 50% have been over the age of 18, and they are about evenly divided across all generations. The data highlights that digital fashion experiences are not just for the younger generation but are a more widespread phenomenon, providing a lucrative monetization opportunity for the company.

With digital fashion continuing to mature, competition for the platform will only be growing, including those from Meta Fashion. The platform could also directly or indirectly challenge other current participants in this technology-centric lifestyle and fashion category—such as Twin Atlas, TOPCAT, Reverse Polarity, and PhygitalTwin. The combination of AI-powered trend tools and phygital retail expansion creates a unique approach in the market.

Conclusion

The pre-seed round, led by Lumikai, marks a significant validation for Meta Fashion and the digital fashion ecosystem as a whole. The startup’s proprietary AI-native engine and enterprise partnerships with companies such as Walmart have demonstrated the business case for virtual wardrobes.

With the expansion of its presence on UGC platforms and an increased scale of operations, Meta Fashion will rely on its proficiency in fusing digital creativity with data-driven analytics when producing original gaming IPs, such as GlamGirls. The funding establishes a strong foundation for the company to capture a substantial share of the growing global virtual asset economy.