In a significant move within India’s rapidly evolving digital content landscape, Kuku, a storytelling platform supported by Google, has successfully raised $85 million in a Series C funding round. This latest investment, spearheaded by Granite Asia (formerly GGV Capital), has propelled Kuku’s valuation to approximately $500 million, more than doubling its previous worth. The funding round also saw contributions from Vertex Growth Fund, Krafton, IFC, Paramark, Tribe Capital India, and Bitkraft.
The infusion of capital comes at a time when India’s digital content consumption is experiencing unprecedented growth. With over a billion internet subscribers and around 700 million smartphone users, the nation has become a fertile ground for digital platforms. This surge is largely attributed to affordable data rates and the widespread adoption of the Unified Payments Interface (UPI), which facilitates seamless digital transactions. Prime Minister Narendra Modi highlighted this trend, noting that 1GB of data in India costs less than a cup of tea.
Founded in 2018, Kuku initially gained traction with its audiobook platform, Kuku FM, offering a diverse range of audio content in multiple Indian languages. Recognizing the evolving preferences of Indian consumers, Kuku expanded its offerings to include Kuku TV, a platform that delivers long-form stories in bite-sized, vertical video episodes. This strategic diversification has resonated with users, leading to a substantial increase in paid subscribers—from two million in 2023 to over ten million currently.
The competitive landscape in India’s digital content sector is intensifying, with both global giants like Instagram and YouTube and local platforms vying for user engagement. The rise of microdramas—short, serialized video stories optimized for mobile viewing—has become a notable trend. Platforms are increasingly adopting this format to cater to the on-the-go consumption habits of Indian audiences.
Kuku’s recent funding round also included secondary transactions, allowing early investors to partially exit. Notably, Google, which held a stake of less than 2%, has fully exited its investment in Kuku.
With the fresh capital, Kuku plans to enhance its content library, invest in technology to improve user experience, and expand its reach to untapped markets within India. The company’s focus remains on delivering culturally relevant and engaging content that resonates with the diverse Indian audience.
As digital media continues to outpace traditional formats, Kuku’s strategic initiatives position it well to capitalize on the burgeoning demand for localized, mobile-first content in India.
