MUMBAI: Digital entertainment startup Kuku Technologies has filed for an initial public offering (IPO) through the confidential route, according to sources familiar with the matter. The company aims to raise up to Rs 3,500 crore (approximately $360 million) through a combination of a fresh issue of shares and an offer for sale (OFS). The firm, which is targeting a listing later this financial year, is eyeing a valuation of up to Rs 15,000 crore ($1.8 billion). Kuku declined to comment on the development.
Rise of Microdrama Format
The IPO filing comes at a time when the microdrama format is gaining significant traction, with growing consumption of bite-sized mobile-first shows. Kuku TV, launched in late 2024, is now releasing more than 150 original shows each month and has surpassed 200 million downloads. The Hindi and vernacular microdrama market in India is expanding at an annual rate of roughly 60%, widely seen as the next major content wave. In China, where the format originated, the market has already reached a valuation of $15 billion, nearly three times the size of the traditional box office.
Expanding Portfolio and User Base
Across its portfolio, which also includes audio platform Kuku FM and edutainment app Guru, the company boasts over 10 million active paying subscribers and 400 million total app downloads. Founded in 2018 by Lal Chand Bisu, Vinod Kumar, and Vikas Goyal, the startup has raised over $150 million from investors such as Fundamentum Partnership, Krafton, Vertex Ventures, Granite Asia, IFC, Paramark, India Quotient, and 3one4 Capital.
Financial Performance
Revenue at Kuku surged nearly seven-fold to over Rs 1,400 crore in FY26, up from Rs 240 crore the previous year. The company claims to be close to breakeven, reflecting its strong growth trajectory and operational efficiency.
