New Delhi, Jan. 26 -- In 2024, Indrani Sen, a Mumbai-based food blogger, was distressed by the growing distance with her then 16-year-old daughter. The digital-savvy 47-year-old found the solution in Pengu-a mobile app she installed on both their phones that let them raise an artificial intelligence (AI) pet penguin together. They spend time together taking care of the penguin, sharing schedules to feed it on time, wrapping a shawl around it when the mobile notification pops that it's cold, taking turns bathing and shopping for clothes and accessories for their virtual pet. "I typically spend Rs.400-600 a month on the application, including a Rs.50 subscription fee to co-parent it with my daughter. But I feel it is worth it, because it has brought us closer and taught her to be empathetic," Sen said. Battling loneliness and, at the same time, shying away from the responsibilities of adopting a real pet, India is turning to virtual pets. A popular concept in countries like the US, Brazil, Singapore, and the UK, these virtual pets draw inspiration from the Japanese handheld videogame Tamagotchi, which was popular in the 90s. The pocket-sized toy popularized the concept of caring for a digital creator, inspiring applications like Talking Tom and Friends in the 2000s. Now, with AI, virtual pet applications-Pengu, Widgetable, Pokipet, Cryptkitties, Zumi Chat, etc.-make it possible for you to customize your pet according to your imagination, so you can literally create and raise a purple kitty or a pet dragon. Valued at over $150 million, AI companions and voice-based apps-including virtual humans and pets-are gaining traction rapidly in the country. Venture capitalists expect the category to expand at a 35-45% compound annual growth rate, with the market projected to reach $1 billion by 2028. UK-based Jaynesh Vekaria, who designed Pokipet in 2016 and released it in 2023, told Mint that he, too, was inspired by the Japanese video game Tamagotchi, which he played with as a kid. What makes Pokipet popular is its multiplayer feature, which allows users to co-parent their virtual pet from different locations, fostering a sense of community. "Due to the multiplayer features, the game appeals to a wide demographic," Vekaria said. "It allows people to co-parent a pet together with their friends and family. It also helps people in long-distance relationships to stay connected." The game uses this opportunity to monetize through subscriptions and customizations. Users pay to buy virtual pet food, clothes, accessories like hats or collars, toys, and even furniture for their background. Startups worldwide are developing AI pet applications. "The AI space has seen rapid advances in infrastructure and business-to-business, but little movement in delivering real value to consumers. We see a tremendous opportunity to change that-by creating products that entertain, engage, and help people socialize in meaningful ways," said Fabian Kamberi, co-founder of New York-based gaming startup Born, in a 13 January press statement....