Kuku files confidentially for ₹3,500 cr IPO, eyes ₹15,000 cr valuation

The company, which operates Indian language audio and short-video apps under the Kuku FM and Kuku TV brands, respectively, seeks a valuation of up to ₹15,000 crore

Digital entertainment startup Kuku Technologies has filed a confidential initial public offering (IPO) to raise up to Rs 3,500 crore ($360 million), sources said.

 

The company, which operates Indian language audio and short-video apps under the Kuku FM and Kuku TV brands, respectively, seeks a valuation of up to Rs 15,000 crore ($1.8 billion) when it lists later in FY27. Kuku refused to comment.

 

The filing comes as the demand for micro dramas — smartphone shows of two to three minutes — gathers momentum in India. Kuku’s IPO will be an inflexion point for India’s mobile-first consumer entertainment story, riding on a market with nearly a billion smartphones, according to industry analysts.

 

 

The IPO will include both a fresh issue and an offer-for-sale. Proceeds from the primary portion are earmarked for technology and artificial intelligence (AI) infrastructure, content production, and geographic expansion.

 

Kuku clocked Rs 1,400 crore as revenue in FY26, up nearly sevenfold from Rs 240 crore the year before. Sources said the company is close to breakeven and AI tools enable it to produce content quickly at lower marketing costs and sharper personalisation.

 

Kuku TV, launched in late 2024, releases more than 150 original shows a month and has crossed 200 million downloads. The Indian micro drama market is growing at 60 per cent annually and is widely seen as the next large content wave, according to industry sources. 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.

 

Across its portfolio, which also includes audio platform Kuku FM and edutainment app Guru, the company has over 10 million active paying subscribers and 400 million total app downloads. It has built a content library of over 60,000 hours across seven to eight Indian languages, and has begun laying the groundwork for entry into developed markets, including the United States.

 

Kuku was founded in 2018 by three IIT alumni: Lal Chand Bisu, Vinod Kumar and Vikas Goyal. The company has raised over $150 million from investors, including Fundamentum Partnership, Krafton, Vertex Ventures, Granite Asia, IFC, Paramark, India Quotient and 3one4 Capital. Cricketer M S Dhoni is also among its backers.

 

Kotak Mahindra Capital, Jefferies, JM Financial and Axis Capital are the lead managers for the IPO.