Mumbai-based InVideo, an AI-powered video creation platform, has achieved a major milestone, surpassing $70 million in annual recurring revenue (ARR). Founded in 2017, the company faced stagnation in 2021 despite raising $53 million in funding. In response, InVideo pivoted by launching InVideo AI in 2023, transforming its growth trajectory. The platform’s AI-driven automation attracted global entrepreneurs and small businesses, particularly in the United States. With a strong hacker mindset and a focus on product-market fit, InVideo continues to scale rapidly while navigating AI advancements and market competition.
InVideo, an AI-driven video creation platform based in India, has achieved a significant milestone, crossing $70 million in annual recurring revenue (ARR). The Mumbai-based startup, founded in 2017 by Sanket Shah, Anshul Khandelwal, Panket Shah, and Harsh Vakharia, simplifies video production for businesses and content creators through AI automation. Despite facing a growth plateau in 2021, the company successfully pivoted by launching InVideo AI in 2023, which transformed its trajectory.
Overcoming Growth Challenges Through AI Innovation
By mid-2021, InVideo’s original product, InVideo Studio, had stagnated, struggling to scale despite raising $53 million in funding. Revenue remained flat for nearly 15 months, putting the company at risk. In response, InVideo launched an entirely new AI-powered product—InVideo AI—which marked a turning point. The platform automated key aspects of video creation, including script-to-video conversion, scene transitions, and voiceovers, catering to a growing demand among small businesses, marketers, and content creators.
This shift allowed InVideo to scale rapidly, particularly in international markets like the United States, where demand for automated video creation surged. Today, the company is one of India’s largest customers of AI giants like OpenAI, Anthropic, Google, and ElevenLabs, leveraging their technology to enhance its services.
Rapid Growth and Entrepreneurial Appeal
The success of InVideo AI propelled the company’s ARR from $20 million in 2023 to $55 million in early 2024, before reaching $70 million in 2025. The platform’s user-friendly AI tools have attracted a wide range of users, including small business owners and digital entrepreneurs looking to create high-quality video content without extensive editing skills.
“InVideo is like a glass of cold water to someone in hell,” said CEO Sanket Shah, referring to how the platform has empowered entrepreneurs by significantly reducing the cost and complexity of video production.
InVideo’s freemium model has further fueled adoption, allowing users to test its AI-driven capabilities before committing to a paid plan. This strategy has driven strong organic growth and customer retention.
A Hacker Mindset and Product-Market Fit Pursuit
As the company scaled, Shah implemented a unique hiring philosophy, prioritizing individuals with a “hacker mindset”—those who move fast, solve problems on the fly, and thrive in a fast-paced, non-bureaucratic environment. This approach has enabled InVideo to innovate rapidly, launching new features at an aggressive pace to keep up with evolving customer demands.
Despite its impressive revenue figures, Shah believes that InVideo has yet to achieve extreme product-market fit (PMF). “There’s a point where, when I sleep, the company still keeps growing. That’s extreme PMF. We’re not there yet,” he stated.
As InVideo continues its trajectory, challenges remain. The rapidly evolving AI landscape, increasing competition from emerging startups and tech giants, and concerns around AI ethics and content moderation require continuous innovation and strategic adaptation.
However, with a strong AI-driven foundation, a customer-centric approach, and an expanding global footprint, InVideo is poised for its next phase of growth. Whether through refining AI capabilities, entering new markets, or further embedding itself in the entrepreneurial ecosystem, the company’s journey is far from over.
