Kuku Files for India’s First Microdrama IPO, Aims for ₹3,500 Cr

Bengaluru-based Kuku, parent company of Kuku FM and Kuku TV, has confidentially filed for an Initial Public Offering (IPO) to raise ₹3,500 Cr. The move positions Kuku to potentially become India’s first microdrama startup to list on public markets, signaling a shift from IPOs traditionally dominated by ecommerce, fintech, and SaaS sectors.

The company is seeking a valuation of up to ₹15,000 Cr ($1.56 Bn) through the listing, which is targeted before the end of the current financial year. Kuku’s entry into public markets will test investor appetite for new-age content platforms centered on mobile-first, short-video formats.

Kuku’s Business Model and Growth

Launched in late 2024, Kuku TV claims over 200 Mn downloads and releases more than 150 original shows monthly. Across its portfolio, the startup reports over 10 Mn paying subscribers. The Kuku FM app has garnered more than 400 Mn downloads on Android and iOS platforms, with the company dropping ‘FM’ to reflect its broader content identity beyond audiobooks.

Kuku’s financial performance reflects rapid growth, with revenue reportedly jumping sixfold from ₹240 Cr in FY25 to ₹1,400 Cr in FY26. This places the startup among India’s fastest-growing consumer internet companies. Investors and mutual fund managers are likely to benchmark Kuku against global digital content platforms rather than traditional media houses.

Microdrama Market and AI Integration

The microdrama category, while nascent in India, is a multi-billion-dollar business in China, with listed companies like COL Group, Universe, Ningmeng Films and TV, and Bilibili. India presents a similar opportunity driven by increasing smartphone penetration, affordable data, and consumers’ willingness to pay for content. The country’s growing internet user base, particularly in tier II and tier III cities, is expected to provide significant tailwinds.

Beyond India, the microdrama opportunity is expanding. Pratilipi’s microdrama studio, Double Tap Films, recently partnered with TikTok to distribute 21 original Indian microdrama series across the US, Brazil, Canada, and Japan. This demonstrates the international appeal of Indian microdrama content.

Kuku leverages AI tools for faster content production, personalized recommendations, and improved marketing efficiency. This approach helps the company scale while managing costs for production and customer acquisition. Investors are drawn to Kuku as it offers exposure to two global investment themes: AI-driven consumer products and mobile-first entertainment.

Challenges and Market Outlook

Public market investors will scrutinize Kuku based on subscriber economics, including average revenue per user (ARPU), paid subscribers, customer acquisition cost (CAC), and retention rates. These metrics will determine if Kuku is perceived as a scalable platform business or another content company.

The microdrama category, despite its recent traction, remains in its early stages and faces intense competition from social media and established OTT players. Maintaining user engagement and content virality presents a continuous challenge. Competitors include incumbents like Pocket FM and Pratilipi, as well as new deep-pocketed entrants such as JioHotstar’s “Tadka,” alongside global tech giants like YouTube, Spotify, and Audible.

Public market investors have become highly selective regarding growth stories, making Kuku a crucial test case for whether Indian public markets are prepared to support a new generation of entertainment startups.

Market Watch: Other Key Developments

Ola Electric recently closed its Qualified Institutional Placement (QIP) at ₹780.24 Cr, securing backing from investors including Goldman Sachs, Motilal Oswal, and JM Financial. The funds are earmarked for debt resolution, manufacturing, R&D, and consumer acquisition.

Travel tech company Ixigo’s board approved acquiring majority stakes in hotel booking startup Brevistay for ₹65.7 Cr, AI surveillance startup ProctAI for ₹7.5 Cr, and agentic AI startup Vestra for ₹4.5 Cr.

SoftBank offloaded 25% of its holding in eyewear giant Lenskart, selling 5.65 Cr shares for ₹2,873.3 Cr in a block deal. Fidelity, Goldman Sachs, Kotak Mutual Fund, and WhiteOak Capital were among the buyers.

Defence tech company ideaForge’s board approved a proposal to raise up to ₹500 Cr through various modes, including preferential allotment or QIP. The funds will support acquisition opportunities, expansion, and R&D initiatives.

PRISM, the parent company of OYO, received SEBI’s approval for its proposed IPO. This development follows its confidential DRHP filing six months prior, aiming to raise ₹6,650 Cr through a fresh issue of equity shares.