Kuku Technologies Ltd, operator of vernacular audio platform Kuku FM and short-video streaming app Kuku TV, has filed confidential draft papers with Sebi for an IPO to raise up to ₹3,500 crore. According to sources, the company is planning to raise between ₹2,500-₹3,500 crore and is targeting a valuation of around ₹15,000 crore, compared with its last private market valuation of about ₹4,500 crore. The initial public offering is expected in the later part of this financial year and will comprise a mix of fresh issue of shares and an offer-for-sale (OFS) by existing investors. The IPO filing comes at a time when investor appetite for short-form entertainment platforms is rising, with the company set to become one of the first major public-market tests of India's micro-drama thesis. The filing comes as the microdrama format -- bite-sized mobile-first shows of two to three minutes per episode that together run 90-120 minutes -- gathers momentum in India, with industry analysts viewing Kuku's IPO as potentially marking an inflection point for India's mobile-first consumer entertainment story.
Kuku's revenue surged nearly seven-fold to more than ₹1,400 crore in FY26 from about ₹240 crore in the previous fiscal, while the company remained close to achieving operational break-even. The company has leveraged artificial intelligence tools to accelerate content production, improve content recommendations and reduce customer acquisition costs. Proceeds from the fresh issue will be utilised for strengthening technology and AI infrastructure, content creation and expansion into new geographies. At the time of its last funding round, chief executive Bisu had told ET that the company had been operating at near-breakeven levels for the preceding two years and expected to turn profitable in FY26. Sources familiar with the financials said AI tools have been central to that acceleration, enabling faster content production, lower marketing costs and sharper personalisation. The company's founder, Lal Chand Bisu, declined to comment on queries regarding the proposed offering.
Across its platforms, including Kuku FM, Kuku TV and Guru, the company has over 10 million active paying subscribers and more than 400 million cumulative downloads. Its content library comprises over 60,000 hours of programming across seven to eight Indian languages. The company's latest offering, Kuku TV, launched in late 2024, focuses on micro dramas -- short-form mobile-first video series with episodes typically lasting two to three minutes. The platform is currently releasing over 150 original shows every month and has crossed 200 million downloads. Kuku TV is now the biggest contributor to the company's business, as reported by sources. Industry estimates suggest that India's Hindi and vernacular micro-drama segment is expanding at around 60 per cent annually, driven by rising smartphone penetration and increasing consumption of short-form video content. In China, where the format originated, it has already scaled to a $15-billion market, nearly three times the size of the traditional box office, according to industry sources. The company is betting that India's micro-drama market can mirror the trajectory seen in China, where the format has evolved into a roughly $15-billion industry.
In October 2025, Kuku Tech had raised $85 million in a funding round led by Granite Asia (formerly GGV Capital), with participation from existing investors including Vertex Growth Fund, Krafton, IFC, Paramark, Tribe Capital India and Bitkraft. The company has raised more than $150 million from investors such as Fundamentum Partnership, Krafton, Vertex Ventures, Granite Asia, International Finance Corporation (IFC), Paramark Ventures, India Quotient and 3one4 Capital. The Mumbai-based company competes with companies such as Lightspeed-backed Pocket FM, as well as short-form audio and video startups including Flick TV, Eloelo, Chai Shots and ReelSaga. Former India cricket captain MS Dhoni is also among its investors. Several digital platforms, including JioHotstar, Amazon, ShareChat and Zee Entertainment Enterprises, have also been tapping into India's growing appetite for micro-dramas. The company has also initiated plans to expand into overseas markets, including the United States. The company's founder, Lal Chand Bisu, declined to comment on queries regarding the proposed offering.
Kotak Mahindra Capital, Jefferies, JM Financial and Axis Capital are acting as the book-running lead managers to the issue. Founded in 2018 by IIT alumni Lal Chand Bisu, Vinod Kumar and Vikas Goyal, Kuku has built a portfolio spanning audio content, microdrama entertainment and edutainment. When contacted, Kuku Technologies declined to comment on the proposed offering. The company has been increasingly deploying AI across its operations, enabling faster content production, lower marketing costs and sharper personalisation, which has contributed to the acceleration in its financial performance. The IPO will include both a fresh issue and an offer for sale, with proceeds from the primary portion earmarked for technology and AI infrastructure, content production, and geographic expansion. The filing comes at a time when investor appetite for short-form entertainment platforms is rising, with several micro-drama startups exploring fundraising rounds amid rapid user growth and improving monetization metrics.
