India warms up to AI virtual pets as companionship goes digital

They spend time together taking care of the penguin, sharing schedules to feed it on time, wrapping a shawl around it when the mobile notification pops that it's cold, taking turns bathing and shopping for clothes and accessories for their virtual pet.

“I typically spend ₹400-600 a month on the application, including a ₹50 subscription fee to co-parent it with my daughter. But I feel it is worth it, because it has brought us closer and taught her to be empathetic," Sen said.

Battling loneliness and, at the same time, shying away from the responsibilities of adopting a real pet, India is turning to virtual pets.

The origin

A popular concept in countries like the US, Brazil, Singapore, and the UK, these virtual pets draw inspiration from the Japanese handheld videogame Tamagotchi, which was popular in the 90s. The pocket-sized toy popularized the concept of caring for a digital creator, inspiring applications like Talking Tom and Friends in the 2000s.

Now, with AI, virtual pet applications—Pengu, Widgetable, Pokipet, Cryptkitties, Zumi Chat, etc.—make it possible for you to customize your pet according to your imagination, so you can literally create and raise a purple kitty or a pet dragon.

Valued at over $150 million, AI companions and voice-based apps—including virtual humans and pets—are gaining traction rapidly in the country. Venture capitalists expect the category to expand at a 35-45% compound annual growth rate, with the market projected to reach $1 billion by 2028.

UK-based Jaynesh Vekaria, who designed Pokipet in 2016 and released it in 2023, told Mint that he, too, was inspired by the Japanese video game Tamagotchi, which he played with as a kid. What makes Pokipet popular is its multiplayer feature, which allows users to co-parent their virtual pet from different locations, fostering a sense of community.

“Due to the multiplayer features, the game appeals to a wide demographic," Vekaria said. “It allows people to co-parent a pet together with their friends and family. It also helps people in long-distance relationships to stay connected."

The game uses this opportunity to monetize through subscriptions and customizations. Users pay to buy virtual pet food, clothes, accessories like hats or collars, toys, and even furniture for their background.

The present

Startups worldwide are developing AI pet applications.

“The AI space has seen rapid advances in infrastructure and business-to-business, but little movement in delivering real value to consumers. We see a tremendous opportunity to change that—by creating products that entertain, engage, and help people socialize in meaningful ways," said Fabian Kamberi, co-founder of New York-based gaming startup Born, in a 13 January press statement.

Born, which raised $25 million in September 2025, has developed five virtual pet apps, including Pengu, which reaches over 15 million users globally.

The company is backed by investors such as Candy Crush co-founder Riccardo Zacconi, Clash of Clans co-founder Ilkka Paananen, and former Adobe chief product officer Scott Belsky, who is now a partner at the film company A24. Venture capitalists Accel and Laton Ventures and private investors like Chinese multinational tech company Tencent Holdings Ltd, which invested in major video games such as Player Unknown's Battlegrounds (PUBG), League of Legends, and Fortnite, have also invested in Born.

Mint's emailed queries to Born remained unanswered.

Canada-based Dapper Labs’ CryptoKitties and Singapore-based Happeny Technologies’ Widgetable also did not respond to Mint's emailed queries.

The future

Psychologists link the growing popularity of such apps to rising urban loneliness. “Loneliness is one of the biggest causes for depression globally and therefore plays a huge role towards the growth of AI companions," said Ishita Pateria, a Mumbai-based counselling psychologist.

“Rather than finding a partner, people seek instant and low-effort gratification through mediums found on AI. While it is a temporary alternative, one must be mindful that they should not be used as an alternative for genuine human connection," she said.

However, Indian virtual pet apps are popular only in metro cities and do not appeal to users in tier II-III cities, according to Aditya Singh, founding partner at VC firm All In Capital. “To cater to the needs of a larger user base in the country beyond urban centres, AI companion startups here are focused on virtual humans like AI friends and health companions rather than pets."