The Pune-based company plans to use the fund to set up a manufacturing facility equipped with injection-moulding and die-casting machines, along with in-house packaging lines.

It plans to drive up the monthly output to meet a rising demand both in India as well as abroad. Mirana also plans to grow its design and sales teams as it accelerates international expansion across the US, Europe, the Middle East and Africa.

Founded in 2021 by Devansh Sharma and Ravi Yadav, Mirana designs and manufactures smart toys ranging from AI-powered robots and AR-enabled remote-control (RC) cars to STEM kits and educational products.

The toy-tech company offers a full-stack production setup, including 3D design, prototyping, tooling, moulding, PCBA/SMT, electronics integration and assembly.

Its products are available in more than 3,000 retail stores, including Hamleys and Toys"R"Us, as well as on major ecommerce platforms such as Amazon India, Amazon US, Flipkart, Swiggy Instamart and Blinkit.

Mirana aims to tap into India's tech-toys segment, which is expected to reach a market size of $3.6 Bn by 2030.

With global brands diversifying away from China, the startup also sees an opportunity to firm up its global footprint.

Exports account for around 40% of its volumes, led by the US, and the company is expanding distribution across Europe, the Middle East and Africa. It has also secured licensed toy partnerships with Indian automotive brands.

"Mirana is uniquely positioned to take advantage of massive structural shifts in global toy supply chains. Unlike typical contract manufacturers, Mirana controls every critical stage - from design and tooling to electronics and assembly - allowing faster iteration, better sourcing control and shorter lead times. This enables high-quality, volume shipments that attract global customers," said Arkam Ventures managing director Bala Srinivasa.

Mirana Toys competes with PlayShifu, Smartivity, Imagimake and Particula in the tech-toys segment.

The development comes at a time when both investors and the government are ramping up their bets on toy-tech startups as automation gains traction, driving down costs and development timelines.

The government raised the basic customs duty on toys from 20% to 60% in February 2020 and to 70% in March 2023. The production-linked incentive (PLI) scheme too offers financial support to companies into toy manufacturing in India.

Last year, PlayShifu raised $6 Mn from Inflexor Ventures, Chiratae Ventures, Bharat Innovation Fund and Athera Ventures Partners.