Major Funding Round Values Kuku at $500 Million
Indian storytelling platform Kuku has reportedly raised $85 million in fresh funding as competition intensifies in the nation’s rapidly growing mobile content market, according to reports from TechCrunch. The Series C round, led by Granite Asia, values the startup company at approximately $500 million—more than double its previous valuation, sources indicate.
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Kuku founder and CEO Lal Chand Bisu confirmed to TechCrunch that the funding round included participation from Vertex Growth Fund, Krafton, IFC, Paramark, Tribe Capital India, and Bitkraft. The round also featured secondary transactions, with early investors including Google—which held under a 2% stake—exiting their positions entirely, according to the report.
India’s Digital Content Boom
India’s digital content market is experiencing explosive growth, driven by over a billion internet subscribers and approximately 700 million smartphone users. Analysts suggest that ultra-low data costs and seamless micropayments through the government-backed Unified Payments Interface (UPI) have made digital content increasingly accessible.
Prime Minister Narendra Modi recently remarked that 1GB of data in India costs less than a cup of tea, highlighting the affordability driving digital adoption. This environment has proven fertile for both global platforms and local competitors like Kuku, particularly those offering content in regional languages.
According to an EY report released in March, digital media overtook television for the first time in 2024 to become the largest segment of India’s media and entertainment sector, contributing 32% of total revenues—approximately ₹802 billion ($9.13 billion). The report projects digital media will grow at a compound annual growth rate of 11.2% between 2024 and 2027.
Kuku’s Platform Expansion and User Growth
Founded in 2018, Kuku initially gained traction with its Kuku FM audiobook offerings before expanding to include multiple platforms. The company now operates Kuku TV for vertical-format video stories, Kuku FM for audio-first content, Kuku Bhakti for devotional content, and StoRizz for microdramas.
According to the TechCrunch report, Kuku has surpassed 10 million paid subscribers, up from two million during its last funding round in 2023. The startup reportedly offers subscription plans ranging from ₹199 (approximately $2) per month to ₹1,499 (about $17) annually, with the quarterly plan being most popular among users.
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Bisu told TechCrunch that users spend an average of 100 minutes daily on Kuku’s platforms, with over 90% of subscribers remaining active month over month. Approximately 80% of subscribers are reportedly from non-metropolitan cities, with a demographic split of 60% male and 40% female, mostly aged 25-35.
Content Creation and AI Integration
Kuku reportedly works with approximately 10,000 content creators, over half of whom are from small towns and non-metro cities. According to Bisu, the startup pays around ₹400 million (roughly $4.5 million) monthly to its creator network.
The Bengaluru-based startup has built a GenAI studio incorporating tools from OpenAI, ElevenLabs, and proprietary systems. Bisu indicated that 70-80% of Kuku’s work is powered by generative AI, though the technology assists rather than replaces human creators.
“We are shifting most of the focus towards our tools because now we have lot of our own data. We train those models with our own data, and then actually the output is much better than outside tools,” Bisu told TechCrunch, noting that AI helps generate titles, plots, scripts, dialogues, and thumbnails while actual audio and video production remains manual.
Intensifying Competition and Legal Challenges
Kuku faces stiff competition from local rival Pocket FM, which offers similar audio and visual storytelling formats. The competition has escalated into legal battles, with the Delhi High Court recently restraining Kuku from releasing new episodes of five disputed shows following copyright infringement allegations.
Bisu characterized the lawsuits as tactical moves timed to coincide with fundraising activities. “Every time, whenever we do a fundraise, they [Pocket FM] go into some court and they file a lawsuit. So it’s not the first time,” he told TechCrunch.
According to Appfigures data shared with TechCrunch, Kuku had recorded over 229 million total downloads as of September, including 122 million for Kuku FM and 88 million for Kuku TV. However, Pocket FM reportedly generates significantly higher revenue despite fewer downloads, with 98% of its earnings coming from outside India compared to Kuku’s predominantly domestic revenue.
Market Trends and Future Expansion
The microdrama format—short, serialized video stories designed for mobile viewing—has gained significant traction in India’s content market. According to reports, microdramas are drawing major appeal across Indian startups and global platforms, with Meta recently launching its own microdrama series targeting Gen Z audiences in India.
Kuku plans to use the new funding to enhance its AI and data infrastructure, expand its workforce of 150 employees, and deepen creator partnerships. The startup is already testing its offerings in the Middle East and the U.S., with plans to scale in the American market in 2026, according to the TechCrunch report.
As the mobile content wars intensify, Kuku’s latest funding round positions it to compete more aggressively in both domestic and international markets, though it continues to face significant challenges from established competitors and ongoing legal disputes.
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