Dashverse, a startup backed by Peak XV Partners, has discontinued its consumer platform DashReels. The company is now looking to raise $30-40 million, with most of the money earmarked for Frameo AI, its video production software for businesses.
The move marks a change in how the company pitches itself. Instead of competing for viewers' attention on a consumer app, Dashverse is putting its next phase of funding behind a tool sold to business customers.
Eloelo is also making a bet on technology. The company raised $80 million this week in a round led by Hornbill Capital and NBCUniversal. It is investing in Dolphin AI, its new product.
Taken together, the two companies show microdrama startups reshaping their growth stories. Both are directing capital towards AI-led products and software rather than relying only on consumer streaming, which is how this category has typically been described.
The two paths differ in detail. Dashverse has closed its consumer platform entirely and is seeking fresh capital for a business-focused product. Eloelo has just secured a large round and is channelling money into a new AI offering.
Dashverse's $30-40 million raise is still being sought, and no close has been announced. Investors and founders will now be watching whether software and AI products can build a more durable business than consumer streaming alone in this segment.
