Kuku Technologies, the parent company of audio storytelling platform Kuku FM and microdrama app Kuku TV, has secured regulatory approval from the Securities and Exchange Board of India to move forward with its proposed initial public offering. The approval marks a significant step for the digital media startup, which had confidentially filed its draft offer documents in June. The company now plans to file an updated prospectus within three weeks and is targeting a market listing by the first half of 2027.
Regulatory Milestone
The Securities and Exchange Board of India issued its observation letter on September 11, signaling that Kuku Technologies can proceed with its public issue. In regulatory terms, the observation letter serves as the formal go-ahead for a company planning to list on Indian exchanges. This clearance follows the confidential submission of the draft red herring prospectus in June and initiates the next phase of the listing process.
IPO Size and Valuation
The initial public offering is expected to raise up to Rs 3,500 crore, which is approximately USD 366 million at current exchange rates. The issue will include a fresh issuance of equity shares as well as an offer for sale by existing shareholders, according to regulatory filings and people familiar with the plans. Kuku Technologies is targeting a valuation of around Rs 15,000 crore, although the final issue size and valuation will depend on prevailing market conditions.
Use of Proceeds
Proceeds from the fresh issue are intended to strengthen technology and artificial intelligence infrastructure, scale content production, and support expansion into new markets. A portion of the capital will also be deployed toward upgrading platform capabilities across audio, microdrama, and microlearning formats. The company aims to use the funds to deepen its competitive position ahead of a potential listing in the first half of 2027.
Company Origins and Portfolio
Kuku Technologies was founded in 2018 by Lal Chand Bisu, Vikas Goyal, and Vinod Kumar Meena. The company began with the audio platform Kuku FM and has since expanded into short-form vertical video through Kuku TV, alongside the microlearning platform Guru. Its content library spans more than 20,000 titles across seven languages and genres such as drama, finance, and well-being, with over 10 million paying subscribers reported last year.
Investor Backing
The company has raised more than USD 150 million from private investors, including Fundamentum Partnership, Krafton, Vertex Ventures, International Finance Corporation, and 3one4 Capital. In October 2025, it closed an USD 85 million Series C round led by Granite Asia at a post-money valuation of USD 550 million. Former Indian cricket captain Mahendra Singh Dhoni also joined as an investor and brand ambassador for Kuku TV.
Financial Performance
Kuku Technologies reported operating revenue of Rs 241.5 crore in fiscal 2025, a 175 percent increase, while its net loss widened 59 percent to Rs 152.6 crore. Revenue reportedly rose to around Rs 1,400 crore in fiscal 2026, with the company nearing operational breakeven. It is also building a 1,000-member artificial intelligence-led content production unit in Mumbai, with close to 200 people hired as of early this month.
Market Outlook and Competition
Rising smartphone penetration and affordable internet access are expected to expand the microdrama market from USD 1.5 billion currently to USD 6.5 billion by 2033. Kuku Technologies competes with Pocket FM, Flick TV, ReelSaga, and Miniplix in this space, as well as larger streaming players such as Amazon, JioHotstar, and Zee5. The shift toward short-form, AI-enabled content production remains central to the company's growth strategy.
The Sebi approval positions Kuku Technologies to become one of the more closely watched digital media listings in India. With a large content library, growing revenue, and expanding microdrama operations, the company is working to translate its scale into sustainable profitability. Investors will now look for the updated prospectus and further clarity on issue size, valuation, and financial momentum as the listing process advances.