Backed by Granite Asia, Kuku hits a $500M valuation as it takes on rivals like Pocket FM with hyperlocal content, AI-driven tools, and global expansion plans.
Kuku Secures $85M to Fuel Next-Gen Storytelling
Kuku, a mobile-first storytelling startup based in Bengaluru, has raised $85 million in Series C funding, more than doubling its valuation to around $500 million.
- The round was led by Granite Asia (formerly GGV Capital), with participation from Vertex Growth Fund, Krafton, IFC, Paramark, Tribe Capital India, and Bitkraft.
- Google, an early investor with under a 2% stake, fully exited in this round via secondary share sales.
This funding comes as India’s digital media landscape sees explosive growth, surpassing TV in 2024 to become the country’s largest media segment.
From Kuku FM to Microdramas: A Multi-Platform Content Machine
Founded in 2018, Kuku has evolved from an audiobook app (Kuku FM) to a suite of platforms:
- Kuku TV: Serialized vertical videos in short, dramatic episodes
- Kuku Bhakti: Devotional stories rooted in Indian mythology
- StoRizz: Microdramas tailored for mobile viewers
All content is available in 8+ Indian languages, with over 10 million paid subscribers, 80% of whom are from non-metro cities.
“Our users spend 100 minutes a day on the platform, and over **90% remain active month over month,” said CEO Lal Chand Bisu.
Downloads Surge, But Revenue Trails Rival
According to Appfigures:
- Kuku crossed 229 million lifetime downloads — including 122M for Kuku FM and 88M for Kuku TV.
- In 2025 alone, downloads jumped 533% YoY to 134M, with $1.9M in consumer spending, up 156%.
However, Kuku trails Pocket FM in revenue:
- Pocket FM earned $100M in 2025, with most of it from outside India, while Kuku is largely India-centric.
- Kuku’s 2025 consumer spending was only $4M in total.
Still, Kuku leads in India-based downloads, reflecting strong engagement in a rapidly growing local market.
GenAI: The Engine Behind Kuku’s Content Creation
Kuku has built an in-house generative AI studio, incorporating tools from OpenAI, ElevenLabs, and proprietary systems to:
- Translate scripts into multiple languages
- Generate titles, plots, dialogues, and thumbnails
- Assist (but not fully automate) audio and video content production
“Around 70–80% of our work is AI-assisted,” Bisu noted. “The rest is still done manually to maintain quality.”
Future plans include improving AI tools to detect copyright violations, support content moderation, and enhance discovery.
Battling Pocket FM in Court and Market
Kuku’s success hasn’t gone unnoticed by competitors. Rival Pocket FM has filed multiple copyright lawsuits, with the Delhi High Court temporarily blocking five shows.
“It’s not the first time — they do this every time we raise funds,” Bisu said, suggesting the lawsuits are meant to distract investors.
Kuku has deployed both manual review teams and automated detection tools to mitigate copyright issues. Some of the new funding will go toward strengthening this tech layer.
Local Roots, Global Ambitions
Kuku’s business is powered by a network of 10,000 creators, over 50% from small towns, who earn ₹400 million (~$4.5M) monthly through the platform.
Its affordable pricing — ₹199/month, ₹499/quarter, ₹1,499/year — supports wide accessibility, with quarterly plans being the most popular.
The company is already testing in the Middle East and U.S., with plans to launch in the U.S. by 2026 and bring in celebrity creators to boost appeal.
