Kuku Secures $85M Funding to Expand Indian Storytelling

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Kuku, the Indian storytelling platform, has secured $85 million in a Series C funding round, pushing its valuation to approximately $500 million. The capital injection comes as the Bengaluru-based startup seeks to scale its audio and video content operations within India’s rapidly evolving digital media landscape.

The funding round was led by Granite Asia, formerly known as GGV Capital. Other notable participants included Vertex Growth Fund, Krafton, IFC, Paramark, Tribe Capital India, and Bitkraft. As part of the transaction, Google, an early backer with a stake of less than 2%, has exited its position, according to Kuku founder and CEO Lal Chand Bisu.

Founded in 2018, the startup has transitioned from its origins as the Kuku FM audiobook platform to a broader content ecosystem. It now operates Kuku TV, which features vertical-format, bite-sized episodes, alongside its audio-first shows and niche offerings like the devotional app Kuku Bhakti and the microdrama-focused platform StoRizz. The company reports that its total paid subscriber base has climbed to over 10 million, a significant increase from the 2 million recorded during its 2023 funding round.

Strategic Growth and AI Integration

Kuku leverages a network of approximately 10,000 creators, paying out roughly ₹400 million (about $4.5 million) monthly. To optimize this production, the startup has built a generative AI studio. According to Bisu, GenAI assists in generating titles, plots, and scripts, covering 70% to 80% of the workflow, though final audio and video production remains a manual process.

The company is focusing on several key areas for its next phase of development:

• Technological Infrastructure: Upgrading proprietary models trained on internal data to improve content output quality.
• Copyright Protection: Investing in tools designed to detect and prevent the unauthorized use of third-party intellectual property by creators.
• Global Expansion: Testing platforms in the Middle East and the U.S., with a broader rollout planned for the American market in 2026.
• Talent Acquisition: Scaling its current workforce of 150 employees to support technical and content initiatives.

Market Dynamics and Legal Challenges

The Indian digital media sector is currently undergoing a massive shift, with digital media recently overtaking television as the largest segment of the nation’s entertainment industry. This growth is fueled by affordable data costs and the widespread adoption of the Unified Payments Interface (UPI).

However, Kuku faces significant friction in the market, particularly from rival Pocket FM. The two companies are currently embroiled in ongoing legal battles regarding copyright infringement, with the Delhi High Court having previously restrained Kuku from streaming specific disputed shows. Bisu dismissed these legal actions as “distractions” timed to coincide with fundraising efforts, emphasizing that the startup maintains a dedicated team to review content for intellectual property violations.

While Kuku continues to dominate in download volume, data from Appfigures indicates that competitors like Pocket FM have achieved higher revenue efficiency, with a large portion of their earnings originating from international markets. Kuku aims to close this gap by enhancing its AI-driven content strategy and bringing on high-profile film and television personalities to broaden its appeal.