Kuku Technologies Files Confidentially For IPO, Eyes ₹3,500 Crore at $1.8 Billion Valuation

Digital entertainment startup Kuku Technologies has confidentially filed for an initial public offering (IPO), seeking to raise between ₹2,500 crore and ₹3,500 crore ($260-$360 million) at a valuation of about ₹15,000 crore ($1.8 billion).

The filing comes as microdramas, or short, mobile-first video series designed for smartphone viewing, continue to gain popularity in India. At the same time, Kuku is increasing the use of artificial intelligence across content production as it looks to scale output and lower costs.

The proposed offering is expected to comprise both a fresh issue of shares and an offer-for-sale (OFS) by existing shareholders.

Why Is Kuku Technologies Planning An IPO Now?

Kuku's scale has expanded sharply over the past year. Revenue crossed ₹1,400 crore in FY26, up from about ₹240 crore a year earlier. Growth came as the company expanded across its content platforms and benefited from rising consumption of short-form digital content.

Kuku reported a loss of ₹153 crore in FY25 after advertising and customer acquisition spending increased significantly. Despite that, the company is now close to achieving operational break-even.

The company had appointed Kotak Mahindra Capital, Jefferies, JM Financial and Axis Capital as book-running lead managers for the issue.

Kuku was last valued at $500 million when it raised $85 million in October 2025. That represented a sharp increase from its valuation of $177 million in September 2023.

If the company lists at the targeted valuation, it would be substantially higher than the $500 million valuation Kuku commanded in its October 2025 funding round.

How Has Kuku Built Its Content Business?

Founded in 2018 by IIT alumni Lal Chand Bisu, Vinod Kumar and Vikas Goyal, Kuku Technologies has expanded across audio content, video entertainment and edutainment.

Its portfolio includes Kuku FM, Kuku TV and Guru.

Across these platforms, the company has accumulated more than 400 million downloads and over 10 million active paying subscribers.

More than 60,000 hours of content are available across Kuku's platforms in seven to eight Indian languages.

One of the company's newer offerings is Kuku TV. The platform focuses on microdramas and currently releases over 150 original shows each month. Downloads have crossed 200 million.

The format has gained popularity among mobile users. Industry estimates place annual growth in India's Hindi and vernacular microdrama market at around 60%.

How Is AI Supporting Kuku's Growth Strategy?

The company relies on these tools for content production, recommendation systems and customer acquisition efforts. Kuku is also applying AI during different stages of content development as it looks to cut production costs and produce content at a faster pace.

Alongside its domestic growth plans, the company has started exploring international markets, including the United States.

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Kuku has raised more than $150 million from investors, including Fundamentum Partnership, Krafton, Vertex Ventures, Granite Asia, International Finance Corporation (IFC), Paramark Ventures, India Quotient and 3one4 Capital.

Investors will now be watching the proposed IPO closely as Kuku seeks a valuation of about $1.8 billion.

Sources:

Moneycontrol

Rediff Money