Game State Labs raises $2 million from PeerCapital and Neon Fund; founder says, 'We are changing...'

Game State Labs, an AI infrastructure and products startup, has raised $2 million in a seed funding round co-led by PeerCapital and Neon Fund.

The startup will use the raised capital to expand product development, strengthen its engineering and go-to-market teams, and scale globally as it reimagines how games understand and engage players.

Founded in 2025 by Aashbir Bhatia, Ashwin Ramakrishnan, and Jagveer Gandhi, Game State Labs provides AI infrastructure and products for the gaming industry. Its proprietary data-plane and AI systems help studios transform raw player data into actionable insights, accurate predictive analytics, and real-time personalization.

“Our vision is to help gaming studios maximise the value of their first-party data,” said Aashbir Bhatia, co-founder of Game State Labs.

“Game studios have always collected first-party data but the technology to utilise that data has been sub-optimal. We are changing that. By allowing AI to understand both player actions and player state, we are helping studios build systems that increase lifetime value and return on ad spend. We are starting with three product offerings, namely faster and deeper insights, predictive analytics, and hyper-personalization.” 

Karthik Prabhakar, Managing Partner at PeerCapital, said, “The team is solving one of gaming’s most persistent challenges with remarkable clarity. Their approach to contextual AI and data infrastructure is both technically ambitious and commercially grounded. We believe they can redefine how the industry thinks about personalization and player intelligence.”

Siddhartha Ahluwalia, Managing Partner at Neon Fund, said, “The gaming industry is entering a stage where data infrastructure will define competitiveness. Game State Labs has built an elegant way to translate player behaviour into measurable outcomes for studios. Their product sits at the intersection of AI, data, and user experience, and that is a space we understand deeply at Neon Fund.”

Game State Labs is currently working with early partner studios to deploy its platform across live games. The startup plans to strengthen integrations with leading game engines, expand into new markets, and deepen its AI capabilities over the coming year.