Kuku FM nears $70 million fundraise at $500 million valuation from Granite Asia and existing investors

Kuku FM will use the fresh proceeds to expand its offerings and include more regional content

Kuku FM, the audiobook and content aggregator platform, is in advanced talks to raise about $70 million (around Rs 600 crore) in a fresh round led by Granite Asia, sources told Moneycontrol, as demand for bite-sized content like Kuku TV rises among users and attracts investors to the space.

Singapore-based Granite Asia (formerly called Granite Global Ventures) is a multi-asset investment platform and is looking to increase its India exposure by backing Kuku FM.

“Granite Asia will most likely lead Kuku FM’s latest round with a $50 million cheque,” one of the persons cited above said.

The remaining, $20 million or so, will come from existing investors like Fundamentum Partnership, IFC and others, sources added.

The fresh funds will come entirely in the form of primary capital. Talks are still underway so the round’s construct may change slightly. Kuku FM, Granite Asia, IFC and Fundamentum Partnership did not reply to Moneycontrol’s queries.

Valuation boost

During the ongoing negotiations, Kuku FM is commanding a valuation of $500 million, nearly 3X higher from around $177 million in September 2023.

Kuku FM has grown significantly in the past months which has helped propel its valuation.

“The company is currently doing $10 million in monthly revenue which translates to an annualised revenue run rate of $120 million, doubling on a year-on-year (YoY) basis,” a source told Moneycontrol.

Micro-payments, including money from UPI auto payment mandates, have boosted Kuku FM’s topline over the past months.

Competitive landscape

Kuku FM will use the fresh proceeds to expand its offerings and include more regional content. It will also grow its creator base so it can provide more engaging content on its platform and keep users hooked for longer.

The Bengaluru-based company is focussing on retention at a time when micro-drama startups are mushrooming in the space.

Kuku FM, which has so far raised around $73 million from India Quotient, 3one4 Capital, Vertex Ventures and others, is stitching together its largest round and will look to extend its lead over emerging micro-drama platforms such as Chai Shots, ReelSaga ShareChat’s QuickTV, Reelies, and more.

The company, founded in 2018 by Lal Chand Bisu, Vikas Goyal and Vinod Meena, will also look to consolidate its position and go ahead of arch rival Lightspeed-backed Pocket FM.