3one4 Capital books 90 percent and 65 percent IRR exits from KukuFM and Raise

3one4 Capital books 90% and 65% IRR exits from KukuFM and Raise

Venture capital firm 3one4 Capital has booked two significant partial exits from its consumer-internet and fintech portfolio, realising about 90 percent internal rate of return (IRR) from KukuFM and 65 percent IRR from Raise Financial Services.

Both exits coincide with sharp gain in valuations, faster revenue growth and strengthened unit economics at the two companies, 3one4 Capital announced on November 24.

What drove the 90 percent IRR exit from KukuFM?

3one4 has partially exited its 2019 seed investment in KukuFM, the regional-language audio entertainment platform offering long-form stories, podcasts and audiobooks. The exit followed the company’s $85 million Series C round, which valued it at over $500 million.

KukuFM now has over 10 million paying subscribers and more than 100 million app downloads. Users spend roughly 100 minutes a day on the platform, and over 90 percent of consumption comes from exclusive Kuku-owned content, reducing dependence on licensed catalogues.

The platform’s annualised revenue run rate has grown 20-fold in two years, while customer acquisition costs that once took more than two years to recover now break even in around four months, aided by stronger retention and a hybrid subscription-microtransaction model.

How did Raise Financial deliver a 65 percent IRR for 3one4?

The second exit comes from Raise Financial Services, a Mumbai-based fintech that operates Dhan, a high-performance trading and investing platform. 3one4 invested in Raise in 2022 at the pre-launch stage and has now partially exited after the company’s $120 million Series B round, which valued it at over $1.2 billion.

Raise has scaled rapidly, reporting more than Rs 1,000 crore in annualised revenue and approximately Rs 650 crore in earnings before interest, taxes, depreciation and amortisation (EBITDA), with margins above 65 percent. Its key moat is DEXT, a fully proprietary trading and execution engine.

DEXT processes 95 percent of orders in under 20 milliseconds, compared with common industry benchmarks of about 120 milliseconds. This speed advantage has helped Dhan win adoption among professional and high-frequency traders who optimise for execution reliability rather than mass-market features.

What do these exits signal about 3one4 Capital’s strategy?

The back-to-back realisations underline 3one4 Capital’s pre-consensus investment posture: backing KukuFM before language-first subscription content took off nationally and supporting Raise before launch in a category widely seen as saturated.

3one4 remains a significant shareholder in both companies and said the exits align with its distribution roadmap while preserving long-term upside.