TL;DR: Kuku Raises $85M for Mobile Content Growth
- Kuku raised $85 million in Series C funding to enhance its audio and video content offerings.
- The funding round values Kuku at approximately $500 million, more than double its previous valuation.
- The company has surpassed 10 million paid subscribers and aims to expand its content formats.
- Kuku is focusing on leveraging AI for content creation and enhancing user engagement.
- The startup plans to explore international markets, including the Middle East and the U.S.
Introduction to Kuku and Its Recent Funding
Kuku, an innovative storytelling platform based in India, has recently secured $85 million in a Series C funding round led by Granite Asia (formerly GGV Capital). This significant investment comes as Kuku aims to scale its audio and video content offerings in the rapidly growing mobile-first content market of India. The funding round also saw participation from notable investors such as Vertex Growth Fund, Krafton, IFC, Paramark, Tribe Capital India, and Bitkraft.
The latest funding round has more than doubled Kuku’s valuation to around $500 million, as confirmed by the company’s founder and CEO, Lal Chand Bisu. This funding round included secondary transactions, allowing some early investors, including Google, to partially exit their investments. Google, which previously held a stake of under 2%, has now exited entirely.
Kuku’s growth trajectory has been remarkable since its inception in 2018. Initially gaining traction with its audiobook offerings through Kuku FM, the company has since expanded its product suite to include Kuku TV, which presents long-form stories in bite-sized episodes, and Kuku FM, focusing on audio-first shows. The platforms cater to a diverse audience, offering content in over eight Indian languages and boasting more than 10 million paid subscribers, a significant increase from just two million in 2023.
The Mobile Content Market in India
India’s mobile content market is experiencing unprecedented growth, driven by a surge in digital content consumption. With over a billion internet subscribers and approximately 700 million smartphone users, the country has become a fertile ground for digital media. The government’s initiatives, such as the Unified Payments Interface (UPI), have made digital transactions seamless, further fueling the growth of mobile content platforms.
In 2024, digital media overtook television for the first time, contributing 32% of the total revenues in India’s media and entertainment sector, which amounted to ₹802 billion (around $9.13 billion). This growth is projected to continue, with an expected compound annual growth rate of 11.2% between 2024 and 2027. The combination of low data costs and the increasing accessibility of smartphones has made it easier for users to consume content on the go.
Kuku’s entry into the market aligns with this trend, as the startup has been quick to adapt to the changing landscape. The rise of microdramas—short, serialized video stories designed for mobile viewing—has been particularly notable, with Kuku experimenting with this format to attract younger audiences. This trend has not gone unnoticed by global players, with platforms like Meta launching their own microdrama series in India.
Kuku’s Growth Trajectory
Kuku’s growth trajectory has been impressive, marked by significant increases in both user engagement and revenue. The company has reported a twofold increase in its average revenue per user and a tenfold overall growth since its last funding round in 2023. While specific financial figures have not been disclosed, the startup’s performance indicates a robust business model.
User Growth and Engagement
Kuku has successfully attracted a diverse subscriber base, with around 80% of its users coming from non-metropolitan cities. The platform’s demographic is predominantly male (60%), with 40% female subscribers, and most users fall within the age range of 25 to 35. Kuku offers various subscription plans, with the most popular being the quarterly plan priced at ₹499 (approximately $6).
The average user spends about 100 minutes daily on Kuku’s platforms, with over 90% of subscribers remaining active month over month. This high level of engagement is a testament to the platform’s ability to resonate with its audience and deliver compelling content.
Revenue and Financial Performance
While Kuku has not publicly disclosed specific revenue figures, the startup has reported significant growth in its financial performance. The company has seen a 2X increase in average revenue per user, indicating a successful monetization strategy. Kuku’s apps have recorded over 229 million total downloads, with Kuku FM leading in consumer spending among its offerings.
In 2025, Kuku experienced a remarkable 533% year-over-year increase in downloads, totaling over 134 million, and a 156% rise in consumer spending, amounting to $1.9 million. The company’s ability to generate revenue through in-app purchases and subscriptions has positioned it favorably within the competitive landscape of mobile content.
Funding Details and Valuation
The recent funding round has positioned Kuku as a formidable player in the mobile content market, with a valuation of approximately $500 million. This valuation reflects the growing investor confidence in Kuku’s business model and its potential for future growth. The Series C funding round, led by Granite Asia, included participation from several prominent investors, signaling strong interest in Kuku’s vision for the future.
The funding will be utilized to enhance Kuku’s content offerings, invest in technology, and expand its workforce. Bisu has indicated that a portion of the funds will be allocated to improving content quality by collaborating with celebrities and enhancing creator partnerships. This strategic investment aims to solidify Kuku’s position as a leader in the mobile content space.
Competitive Landscape
Kuku operates in a highly competitive environment, facing challenges from both local and global players in the mobile content market. The rise of platforms like Pocket FM, which offers similar audio and visual storytelling formats, has intensified competition. Pocket FM has also engaged in legal battles with Kuku, filing multiple copyright infringement lawsuits that have led to restrictions on Kuku’s content releases.
Key Competitors
Kuku’s primary competitor, Pocket FM, has seen a decline in downloads but an increase in consumer spending, highlighting the competitive dynamics at play. While Kuku has more downloads, it has reported lower in-app purchase revenue compared to Pocket FM. This disparity underscores the challenges Kuku faces in converting its user base into paying customers.
Market Challenges
The competitive landscape is further complicated by ongoing legal disputes, particularly with Pocket FM. Bisu has expressed concerns that these lawsuits are strategically timed to distract investors during fundraising efforts. Kuku has implemented measures to mitigate copyright violations, including a dedicated team to review uploaded content and tools to detect potential infringements.
Despite these challenges, Kuku’s focus on enhancing its content offerings and leveraging technology positions it well to navigate the competitive landscape. The startup’s commitment to improving its creator partnerships and investing in technology will be crucial in maintaining its growth trajectory.
Kuku’s Content Strategy
Kuku’s content strategy is centered around providing diverse offerings that cater to the preferences of its audience. The startup has successfully expanded its content portfolio, incorporating various formats to engage users effectively.
Diverse Content Offerings
Kuku’s platforms, Kuku FM and Kuku TV, provide a range of content, including audiobooks, long-form stories, and microdramas. This diverse content strategy allows Kuku to appeal to a broad audience, including those interested in audio-first experiences and visual storytelling. The company’s commitment to offering content in multiple Indian languages further enhances its accessibility and reach.
Use of AI in Content Creation
Kuku has embraced technology to streamline content creation and enhance user engagement. The startup has established a GenAI studio that employs AI tools for multilingual translation and on-demand ad production. While Kuku does not use AI to autonomously produce content, it leverages AI to assist creators in developing audio and video stories.
Bisu has indicated that 70% to 80% of the work at Kuku is powered by GenAI, with the remaining tasks still performed manually. This hybrid approach allows Kuku to maintain quality while benefiting from the efficiencies offered by AI technology.
Target Audience and Subscriber Demographics
Kuku’s target audience comprises a diverse demographic, with a significant portion of its subscribers hailing from non-metropolitan cities. This focus on reaching users outside major urban centers has been instrumental in Kuku’s growth.
The platform’s subscriber base is predominantly male (60%), with a notable representation of females (40%). Most subscribers fall within the age range of 25 to 35, indicating a youthful audience that is increasingly consuming digital content. Kuku’s pricing strategy, with affordable subscription plans, has made it accessible to a wide range of users, further contributing to its subscriber growth.
Future Plans and Expansion Strategies
Kuku’s recent funding will be pivotal in shaping its future plans and expansion strategies. The startup aims to enhance its content offerings, invest in technology, and explore international markets.
International Expansion
Kuku is already testing its offerings in the Middle East and the U.S., with plans to scale its operations in the U.S. by 2026. This international expansion strategy reflects Kuku’s ambition to tap into new markets and diversify its revenue streams.
Enhancements in Technology and Content
The startup plans to allocate a portion of its funding to improve its technology infrastructure and content quality. This includes investing in tools to enhance creator partnerships and streamline content creation processes. By focusing on technology and innovation, Kuku aims to stay ahead of the competition and continue delivering engaging content to its audience.
Legal Challenges and Copyright Issues
Kuku faces ongoing legal challenges, particularly from Pocket FM, which has filed multiple copyright infringement lawsuits against the startup. These legal disputes have resulted in restrictions on Kuku’s content releases and pose a significant challenge to its operations.
Bisu has expressed concerns that these lawsuits are strategically timed to distract investors during fundraising efforts. Kuku has implemented measures to mitigate copyright violations, including a dedicated team to review uploaded content and tools to detect potential infringements. The startup is committed to addressing these legal challenges while continuing to focus on its growth strategy.
Conclusion and Outlook
Kuku’s recent funding round and its strategic plans for growth position the startup favorably within India’s competitive mobile content market. With a focus on enhancing content offerings, leveraging technology, and expanding internationally, Kuku is poised for continued success.
The startup’s commitment to providing diverse content and engaging its audience will be crucial as it navigates the challenges of competition and legal disputes. As Kuku continues to innovate and adapt, it has the potential to solidify its position as a leader in the mobile content space.
Kuku’s Strategic Expansion in India’s Mobile Content Market
Funding Overview and Market Context
Kuku’s recent funding round has provided the necessary capital to enhance its content offerings and expand its reach in the mobile content market. With a valuation of approximately $500 million, the startup is well-positioned to capitalize on the growing demand for digital content in India.
Innovative Content Formats and User Engagement
Kuku’s focus on diverse content formats, including microdramas and audio-first experiences, has resonated with its audience. By leveraging technology and enhancing user engagement, Kuku aims to maintain its growth trajectory and attract new subscribers.
Challenges and Competitive Landscape
Despite facing legal challenges and stiff competition, Kuku’s strategic investments in technology and content position it well to navigate the competitive landscape. The startup’s commitment to addressing copyright issues and enhancing creator partnerships will be crucial in sustaining its growth and success in the mobile content market.
