Kuku Files for ₹3,500 Cr IPO: Audio OTT Startup Eyes Major Expansion
Kuku team reviewing DRHP documents for IPO in a corporate office.
Key Highlights
Audio OTT platform Kuku has confidentially filed its DRHP to raise ₹2,500-3,500 Cr via IPO, targeting a ₹15,000 Cr valuation. Funds for tech, AI, content, and expansion.
Kuku Confidentially Files DRHP for ₹3,500 Cr
Audio OTT startup Kuku has confidentially submitted its Draft Red Herring Prospectus (DRHP) for an initial public offering (IPO), aiming to secure between ₹2,500 crore and ₹3,500 crore, equivalent to approximately $261 million to $366 million. The company is reportedly targeting a substantial valuation of up to ₹15,000 crore, or about $1.8 billion, for its public listing, according to insights shared by sources with Inc42.
The proposed IPO is structured to include both a fresh issue of new shares and an offer-for-sale () component, allowing existing shareholders to divest a portion of their holdings. Funds generated from the fresh issue are earmarked for critical strategic investments. These include significant enhancements to Kuku’s technology and artificial intelligence (AI) infrastructure, an increased focus on original content production, and a robust plan for geographic expansion, indicating the company’s ambition to broaden its market reach and technological capabilities.
The confidential filing route, a mechanism available to companies seeking to list on Indian bourses, allows Kuku to engage with regulators and refine its prospectus away from immediate public scrutiny. This approach provides flexibility and discretion in the initial stages of the IPO process, aligning with the company’s strategic preparations for its market debut.
Financial Performance and Company Profile
Kuku has demonstrated a rapid financial growth trajectory, reporting a substantial revenue of ₹1,400 crore in the fiscal year 2026. This figure represents a remarkable 5.8-fold increase from its revenue of ₹240 crore recorded in the preceding fiscal year. Furthermore, sources indicated that the audio content provider was close to achieving breakeven in the last fiscal year, underscoring its improved operational efficiency and growing market acceptance.
Established in 2018, Kuku has rapidly evolved into a significant player in India’s digital content landscape. The company operates two distinct and popular platforms: Kuku FM, which specializes in vernacular audio content, including audiobooks, stories, and podcasts, catering to a diverse linguistic audience across India; and Kuku TV, its short-video application, designed to capture the burgeoning market for concise and engaging video content.
Strategic Investments and Advisory
Prior to its IPO filing, Kuku has successfully raised a total of $156 million through various funding rounds. This capital has been secured from a consortium of prominent investors, reflecting confidence in the company’s business model and growth prospects. Key investors include Fundamentum Partnership, Krafton, Vertex Ventures, IFC, and 3one4 Capital, whose support has been instrumental in Kuku’s expansion and technological development.
In a notable strategic move, Kuku recently brought on board Mahendra Singh Dhoni, the highly acclaimed former captain of the Indian cricket team. Dhoni’s involvement extends beyond a mere endorsement; he has joined Kuku as both an investor and the brand ambassador for its Kuku TV platform. This partnership is expected to significantly enhance Kuku TV’s visibility and appeal, leveraging Dhoni’s widespread popularity and trusted image to reach a broader audience.
To navigate the complexities of its public listing, Kuku has appointed a syndicate of leading financial institutions as lead managers for the IPO. These include Kotak Mahindra Capital, Jefferies, JM Financial, and Axis Capital, who will provide expert guidance and facilitate the offering. When approached for comments on these developments, Kuku chose to decline Inc42’s inquiries, maintaining its confidential approach to the IPO process.