Joining the massive line of Indian tech startups heading to public bourses this fiscal year, Kuku Technologies Ltd—the parent company behind vernacular audio platform Kuku FM and microdrama app Kuku TV—has filed its draft red herring prospectus (DRHP) via SEBI’s confidential route.
The Bengaluru-based content powerhouse is looking to raise between ₹2,500 crore and ₹3,500 crore through the public offering. According to sources close to the development, Kuku is targeting a listing valuation of up to ₹15,000 crore ($1.8 billion), marking a massive premium over its last private round.
The issue will feature a combination of fresh equity and an offer-for-sale (OFS) from its venture capital backers, managed by a lead book-running cohort consisting of Kotak Mahindra Capital, Jefferies, JM Financial, and Axis Capital.
1. Capital Allocation: Pumping Up the AI Content Engine
Proceeds generated from the primary capital raise are slated for deep technological overhauls and global expansion. According to the company’s long-term deployment strategy:
- AI and Infrastructure Scaling: The primary proceeds will be heavily invested in upgrading internal artificial intelligence (AI) models. Kuku uses generative AI tools to rapidly translate scripts, accelerate post-production, and lower raw customer acquisition costs.
- Content Catalog Expansion: A massive capital block will fund native content production to extend its library past its current 60,000-hour baseline.
- Going Transatlantic: Following the footsteps of regional video apps, Kuku has initiated expansion playbooks targeting Western markets, specifically looking to scale its user footprint in the United States.
2. Financial Turnaround: A 7X Revenue Jump
Kuku’s sudden public-market push is strongly backed by an explosive financial trajectory over the last 12 months, pulling the company out of a deep cash-burn phase:
- The Revenue Surge: Driven by premium content unlocks, Kuku’s revenue surged nearly sevenfold to over ₹1,400 crore for FY26, up from just ₹240 crore recorded during the FY25 cycle.
- Nearing the Green: Unlike its historic FY25 losses of ₹153 crore, the company’s aggressive integration of cost-cutting AI systems across recommendations and user marketing has pulled it extremely close to achieving operational breakeven.
3. The Growth Catalyst: Kuku TV and Microdramas
While the company built its fame on vernacular audiobooks and podcasts via Kuku FM, the primary engine driving its ₹15,000 crore valuation is its late-2024 video pivot: Kuku TV.
Kuku TV specializes in mobile-first microdramas—highly addictive, short-form fictional series where episodes last a mere two to three minutes. The platform is rolling out over 150 original microdrama shows every single month and has blown past 200 million individual downloads.
Industry estimates project that India’s vernacular microdrama market is ballooning by 60% annually, driven by a massive consumer migration toward hyper-condensed digital video entertainment.
4. Star-Studded Cap Table and Capital Trends
Founded in 2018 by IIT alumni Lal Chand Bisu, Vinod Kumar, and Vikas Goyal, Kuku has raised more than $150 million from elite institutional investors.
Its extensive cap table features heavy hitters like Fundamentum Partnership, Krafton, Vertex Ventures, Granite Asia, India Quotient, and 3one4 Capital. Notably, former Indian cricket captain MS Dhoni also stands as a key high-profile backer and brand ambassador.
Kuku’s choice to use SEBI’s confidential filing mechanism reflects a growing playbook among tech unicorns—such as B2B manufacturing marketplace Zetwerk—allowing startups to undergo regulatory review and iron out compliance hurdles privately, preserving absolute listing timeline flexibility amid volatile global capital market conditions.