Kuku Secures $85M Series C Funding, Valuation Surges to $500 Million
Indian storytelling platform Kuku has raised $85 million in a Series C funding round led by Granite Asia (formerly GGV Capital). This latest round more than doubles the company’s valuation to approximately $500 million, according to Kuku founder and CEO Lal Chand Bisu. Additional investors include Vertex Growth Fund, Krafton, IFC, Paramark, Tribe Capital India, and Bitkraft. The round also involved secondary share sales, with early backers such as Google exiting their stakes entirely.
India’s digital content consumption is surging, fueled by over 700 million smartphone users and ultra-low data costs. Prime Minister Narendra Modi highlighted that 1GB of data costs less than a cup of tea, underscoring the affordability driving mass adoption. Government initiatives like the Unified Payments Interface (UPI) have further facilitated seamless digital transactions, making the Indian market attractive to global and local content platforms alike. In 2024, digital media overtook television as India’s largest media segment, accounting for 32% of sector revenues, or roughly $9.13 billion, with an expected compound annual growth rate of 11.2% through 2027, per an EY report.
Founded in 2018, Kuku initially gained traction with its audiobook service, Kuku FM. It has since expanded to include Kuku TV, offering bite-sized, vertical-format video stories, and other niche apps like Kuku Bhakti and StoRizz. The startup provides content in over eight Indian languages, boasting more than 10 million paid subscribers — a fivefold increase since its last funding round in 2023. Around 80% of its user base resides in non-metropolitan areas. Subscriber demographics skew 60% male and 40% female, predominantly aged 25 to 35. Consumers spend an average of 100 minutes daily on Kuku’s platforms, with a retention rate exceeding 90% month over month.
Leveraging AI to Enhance Content Creation
Kuku operates a GenAI studio that employs artificial intelligence tools from providers like OpenAI and ElevenLabs, alongside proprietary software, to assist content creators. These tools generate titles, plots, scripts, dialogues, and thumbnails, while actual audio and video production remains manual. Between 70% and 80% of Kuku’s content production workflow is AI-assisted, optimizing efficiency without fully automating storytelling. The platform currently collaborates with approximately 10,000 creators, over half of whom hail from smaller towns and non-metro cities. The company invests about ₹400 million ($4.5 million) monthly in creator payouts.
Strong User Growth and Revenue Metrics
Kuku’s apps have accumulated over 229 million total downloads, with Kuku FM accounting for 122 million and Kuku TV 88 million. Consumer spending on the platforms exceeded $4 million, led by Kuku FM at $2.8 million. In 2025 alone, downloads surged 533% year-over-year to 134 million, while consumer spending rose 156% to $1.9 million. Kuku TV accounts for more than 60% of total consumption time.
Legal Challenges Amid Intensifying Competition
Kuku faces stiff competition from rivals such as Pocket FM, which has initiated multiple copyright infringement lawsuits against the company. The Delhi High Court recently barred Kuku from releasing new episodes of five contested shows. CEO Lal Chand Bisu attributes these legal actions to attempts at investor distraction during fundraising rounds. Kuku employs a dedicated team and proprietary technology to detect and prevent copyright violations. Comparative data shows Kuku leads in downloads but trails Pocket FM in in-app purchase revenue, with Pocket FM generating most of its revenue internationally.
Growth Strategy and International Expansion
Kuku intends to allocate its new funding towards enhancing AI and data infrastructure, expanding its 150-strong workforce, and deepening creator partnerships. The company is actively testing markets in the Middle East and the United States, with plans to scale further in the U.S. in 2026. Additionally, Kuku aims to collaborate with celebrities from film and television to enrich its content offerings.
FinOracleAI — Market View
Kuku’s substantial Series C funding and rapid user growth underscore the expanding opportunity within India’s mobile-first digital content market. Its strategic use of AI to augment content creation reflects a forward-looking approach to scaling efficiently while maintaining quality.
- Opportunities: Growing smartphone penetration and affordable data in India fuel content consumption; AI-assisted production enhances scalability; expansion into international markets diversifies revenue streams.
- Risks: Intense competition and ongoing copyright litigation could hamper growth; monetization remains challenging compared to rivals; reliance on third-party creators requires ongoing content quality control.
Impact: Kuku’s strengthened financial position and technological investments position it well to capitalize on India’s booming digital media sector, though legal and competitive pressures necessitate cautious navigation.
