In a significant development for India’s digital content sector, Mumbai-based vernacular audio platform Kuku FM has reported extraordinary growth for FY24, with its total revenue nearly doubling to Rs 104.1 crore. The platform’s performance highlights the increasing demand for vernacular audio content in India’s digital entertainment landscape.
The company’s operating revenue witnessed a remarkable 114% surge, reaching Rs 88 crore in FY24, up from Rs 41.1 crore in the previous fiscal year. This growth is particularly noteworthy as it comes alongside an 18% reduction in losses, which decreased to Rs 96 crore from Rs 116.5 crore in FY23.
Founded in 2018 by Lal Chand Bisu, Vikas Goyal, and Vinod Kumar Meena, Kuku FM has successfully carved out a niche in the vernacular audio content space, boasting an impressive base of over 25 million paid subscribers. The platform offers more than 150,000 hours of diverse content, ranging from audiobooks and personal finance to self-help, education, and entertainment.
Despite the substantial revenue growth, Kuku FM’s total expenditure increased by 21% to Rs 200 crore in FY24. The company’s largest expense remained advertising and marketing, accounting for Rs 102 crore, a 7% increase from the previous year. Employee benefits saw a significant 37% rise to Rs 48 crore, while content creation costs grew by 41% to Rs 16 crore, reflecting the platform’s commitment to expanding its content library.
The platform’s growth trajectory has attracted significant investor interest, evidenced by its recent USD 25 million Series C funding round, co-led by the Fundamentum Partnership and the International Finance Corporation (IFC), with participation from Vertex Ventures. This follows their previous USD 21.9 million Series B1 round, indicating strong investor confidence in the company’s business model.
For the Indian startup ecosystem, Kuku FM’s performance represents a significant milestone in the monetization of digital content. The platform’s success in converting users into paid subscribers demonstrates the viability of subscription-based models in the Indian market, particularly for vernacular content. This could pave the way for more startups focusing on regional language content and innovative monetization strategies.
The company’s ability to grow revenue while simultaneously reducing losses showcases a maturing business model that could serve as a blueprint for other content startups. Its focus on vernacular content aligns well with India’s digital transformation, where regional language users are increasingly driving internet adoption and content consumption.
Looking ahead, Kuku FM’s performance signals robust growth potential in India’s digital content market, particularly in the vernacular audio segment. The platform’s success could inspire more entrepreneurs to explore opportunities in regional language content creation and distribution, potentially transforming how India consumes digital content.
