“Hey Miko! Why is the sky blue?”

Six-year-old Alysha asked, her eyes fixed on the small robot’s animated screen. The device, within seconds, in a cheerful and engaging voice, launched into an explanation on light wavelengths and atmospheric scattering. Before it even finished, Alysha had another question ready. Then another. And another.

This had become the daily routine ever since her California-based parents bought her the Miko 3, an AI-powered robot companion, in 2022. A little tablet on wheels with cartoon eyes, Miko—sold for prices starting at $199 in the US and about Rs 15,000 in India—can do math, make kids dance, teach them exercises, play hide and seek, and get them to bed by 10 p.m. The device was always there, and every little thing—from spelling a word to what to have for breakfast—now went through Miko first.

Then came the concern that haunts every parent in the age of digital companions. Alysha was growing dependent. Her mother had to intervene to restore some balance to the six-year-old’s relationship with technology.

This delicate balance—between educational supplement and digital dependency—is precisely the tightrope that $550 million-valued Miko walks every day.

The 10-year-old Mumbai-based company has raised $80 million in all from the likes of Stride Ventures and Ivycap Ventures, and manufactures consumer robots in India for customers mostly in the US and other countries. Its two main products, Miko Mini and Miko 3, both AI-powered robots, are aimed at children aged between 5 and 10 years. The company claims to have sold more than half a million units last year, with its sales growing at 40% a year.

Miko reportedEntrackrMiko reports Rs 358 Cr revenue in FY24, income from subscription biz surges 29X a 58% year-on-year increase in its FY24 revenue at Rs 358 crore (It’s yet to file FY25 financials). Contrast that with its US-based competitors, such as Moxie, Jibo, Kuri, and Anki’s Cozmo—all of which raised or had revenue of around $100 million—who’ve had to shut down within two to three years of their launch. The culprit? Cloud costs, heavy competition, high costs of operating from the US, and a lack of recurring revenue.

In the $8 billion global social-robots market, these companies were haemorrhaging money. When funding dried up, they died instantly.