Kuku FM raises $25 mn from investors; aims to expand content, improve tech

The Series C round marks Fundamentum’s second investment in the company. Kuku FM had last raised $21.9 million in Series B1 funding, led by the Fundamentum in September 2022. Other investors in the company include Google, Paramark, KRAFTON, Inc, 3one4 Capital, V Cube Ventures, India Quotient and FounderBank Capital.

Kuku FM will use the new investment to expand its content and improve technology. The company, which was founded in 2018 by Lal Chand Bisu, Vikas Goyal and Vinod Kumar Meena, is India’s largest audio platform with more than 2.5 million paid subscribers. It hosts more than 150,000 hours of content in audiobooks, stories, book summaries, courses and podcasts, it said.

“Kuku FM has created a niche category which caters to the unique and rapidly evolving demands of the new digital natives of India,” said Prateek Jain, principal at Fundamentum Partnership. “The team has demonstrated a great understanding in terms of creating a business model with strong focus on unit economics and robust fundamentals.”

India has more than 700 million internet users, with 90 per cent of the users consuming content in their languages. The digital landscape is transforming and companies are focusing on people living in Tier-II and Tier-III cities, said Kuku FM.

“India’s creative industries have the potential to reach diverse populations and unlock income opportunities at scale,” said Wendy Werner, IFC’s India country head. “Our partnership with Kuku FM aligns with our shared gender and inclusion priorities and aims to empower underrepresented voices, especially those of women, fostering upward mobility and sustainable economic growth.”

“In our journey towards creating a sustainable business model with a clear path to profitability, Fundamentum team’s insights and support have been invaluable,” said Bisu, co-founder and chief executive officer of Kuku FM. “We look forward to leveraging IFC’s valuable experience and expertise in scaling up Kuku FM’s business.”

“We will continue to focus on providing sustainable livelihood opportunities for India’s creators and aim to build a network of creators that mirrors our diverse listener community,” said Meena, co-founder of Kuku FM.

“We want to leverage cutting edge technology to build India’s most intuitive, immersive and transparent content platform here at Kuku FM,” said Vikas Goyal, co-founder and chief technology officer of Kuku FM.