Inkitt Raises $37M to Build a 21st Century Disney
Everyone has a story in them, as someone famous once said. A startup called Inkitt believes that it can use AI to turn the strongest of these into blockbusters and build a new “Disney” for the 21st century around that content. Now it’s raised $37 million in aid of that ambition.
What Inkitt Does
The startup’s eponymous app lets people self-publish stories. Using AI and data science, it selects what it believes are the most compelling of these to tweak and subsequently distribute and sell on its second app, Galatea.
With 33 million users and dozens of bestsellers already, Inkitt’s business is booming. The new funding will help expand the type of content it produces:
- AI-generated stories based on original ideas.
- Personalized fiction for specific readers.
- A move into games, audiobooks, and video content.
Future Vision
The longer-term vision, says CEO and founder Ali Albazaz, is to expand Inkitt’s content library and build a multimedia empire around it. "Less a competitor to the likes of Wattpad, more 'the Disney of the 21st century,'" he says.
"People have so much going on now. They are looking for an escape, and we think that’s why we have been thriving."
The Investment
The $37 million Series C is being led by Vinod Khosla of Khosla Ventures, with participation from NEA, Kleiner Perkins, Redalpine, and other undisclosed investors.
The Series C funding brings Inkitt’s total raised to $117 million, and it’s already been approached by a publisher for acquisition.
Building the Future
Inkitt’s focus on creating a new kind of digital reading experience is paying off. The platform is betting on innovation in book delivery — with shorter chapters, mobile-friendly formats, and interactive elements like sounds to keep readers engaged.
Despite the decline in traditional reading habits, Inkitt believes it can capture more reading time by making books more dynamic and personalized. Every element, from titles to story arcs, is A/B tested to maximize appeal.
Expanding the Vision: AI and Personalization
Inkitt is integrating AI to help generate stories and tailor content to individual tastes. This approach is still in progress, with the company experimenting with different levels of personalization. AI-generated stories, based on catchy treatments crafted by humans, are a key part of the future.
Currently, books published on Inkitt are automatically translated into 10 languages using AI, with text-to-speech for audiobooks powered by ElevenLabs and cover art generated by Leonardo AI.
Why Inkitt is Different
Unlike traditional publishers, Inkitt focuses on undiscovered talent rather than big-name authors. This allows the startup to cater to a long tail of creators and produce content that resonates with a wide audience.
Inkitt's Success So Far
Inkitt now ranks as the No. 11 bestselling publisher globally, outperforming giants like Penguin Random House and claiming a “20x” higher success rate than traditional publishers. With revenues doubling in the past year, Inkitt is well on its way to becoming a key player in the entertainment industry.
Interested in learning more? Visit Inkitt's website to explore their platform and discover new, AI-powered stories!