India’s ‘Experience Economy’ Gains Momentum as Startup Alive Secures Seed Funding

Bangalore, India – November 12, 2025 – As Indian consumers increasingly prioritize experiences over material possessions, a new wave of startups is emerging to cater to this evolving demand. Alive, a platform focused on curating unique local experiences, recently secured ₹6 crore in seed funding led by Powerhouse Ventures, highlighting the growing investor confidence in India’s burgeoning ‘experience economy’. This investment signals a potential shift in the leisure and entertainment landscape, moving beyond traditional tourism and towards more personalized, immersive activities.

A Rising Tide of Experiential Demand

The global shift towards valuing experiences isn't new, but its acceleration in India is notable. Driven by rising disposable incomes, increased digital penetration, and a young, aspirational population, Indian consumers are actively seeking unique and memorable activities. “There's a clear trend towards prioritizing ‘doing’ over ‘having’,” explains a market analyst specializing in consumer behavior. “People are willing to spend on activities that create lasting memories and offer a sense of personal fulfillment.”

Alive aims to capitalize on this trend by connecting consumers with a diverse range of curated experiences, from culinary workshops and art classes to adventure activities and cultural tours. The platform differentiates itself through a focus on local, authentic offerings, and a commitment to quality control. “We’re not just listing activities; we’re curating them,” a company spokesperson explained. “We meticulously vet each experience provider to ensure a high level of quality and authenticity.”

Beyond Traditional Tourism

While traditional tourism remains a significant contributor to the Indian economy, the ‘experience economy’ offers a different value proposition. It’s less about ticking off landmarks and more about immersing oneself in local culture and engaging in meaningful activities. “Traditional tourism often feels passive,” explains a travel industry expert. “The experience economy empowers consumers to actively participate and create their own adventures.”

This shift has implications for various sectors, including hospitality, entertainment, and local businesses. Hotels are increasingly offering experiential packages, while restaurants are incorporating cooking classes and themed events. Local artisans and service providers are finding new avenues to reach consumers through platforms like Alive.

The Creator Economy Component

A key element of Alive’s model is its empowerment of local creators and experience providers. The platform provides these individuals with the tools and resources to market their offerings and reach a wider audience. “We see ourselves as a facilitator, connecting talented creators with eager consumers,” says a representative from the company. “We believe that by empowering local entrepreneurs, we can create a more vibrant and sustainable tourism ecosystem.”

Reports suggest that some creators on the platform are earning upwards of ₹5 lakh per month, indicating the potential for significant income generation. While independently verifying these figures remains challenging, it underscores the growing opportunities within the creator economy in India.

Investor Confidence & Market Potential

The ₹6 crore seed funding round led by Powerhouse Ventures is a strong signal of investor confidence in Alive’s vision and the potential of the Indian experience market. “We believe that Alive is well-positioned to capture a significant share of this rapidly growing market,” said a partner at Powerhouse Ventures. “Their focus on curation, quality control, and local empowerment sets them apart from the competition.”

The Indian tourism and hospitality industry is projected to reach significant growth in the coming years. A recent report by India Brand Equity Foundation (IBEF) highlights the increasing demand for experiential travel, particularly among millennials and Gen Z consumers. The adventure tourism segment, in particular, is projected to experience a CAGR of 17.4% between 2024 and 2032.

Challenges & Competition

Despite the promising outlook, the ‘experience economy’ in India faces several challenges. Infrastructure limitations, inconsistent quality control, and a lack of standardized regulations can hinder growth. Competition from established players, such as BookMyShow and Insider.in, is also intensifying, as these platforms expand their experiential offerings.

“The market is becoming increasingly crowded,” acknowledges a market analyst. “Alive needs to differentiate itself through innovation, quality, and a strong focus on customer experience.” The platform also needs to address concerns related to safety and hygiene, particularly in the wake of the COVID-19 pandemic.

Looking Ahead

Despite these challenges, the future of the ‘experience economy’ in India appears bright. As consumers continue to prioritize experiences over material possessions, platforms like Alive are poised to play a crucial role in shaping the future of leisure and entertainment. The company plans to expand its offerings to new cities, introduce innovative features, and forge strategic partnerships to further enhance its market position.

“We’re just getting started,” says a spokesperson for Alive. “Our vision is to create a platform that inspires people to explore, connect, and create unforgettable memories.” The company hopes to not only drive economic growth but also foster a deeper appreciation for local culture and promote sustainable tourism practices. The success of Alive, and similar startups, will depend on their ability to navigate the challenges and capitalize on the opportunities within this rapidly evolving landscape. A tourism industry expert noted, “It’s no longer enough to see a place; people want to feel it, participate in it, and connect with it on a deeper level.” And that’s precisely the promise of the ‘experience economy’ – a shift from passive observation to active participation, and a move towards a more immersive, meaningful, and memorable travel experience.