80–100 Employees are Laid Off by Kuku FM as Part of Reorganisation Effort

Nitin Konde, Varun Bhardwaj

Nov 16, 2024 — 2 min read

Kuku FM Lays Off 80–100 Employees Amid Reorganisation Efforts

While reorganising its operations last week, 80–100 workers were let off by Mumbai-based audiobook platform Kuku FM. Additionally, contracted staff were affected by the exercise. According to the reports, 300 workers, both on and off the roll, lost their jobs overall. The exercise had the biggest effect on the content team, which consists of authors and producers.

According to the sources, there may have been even more workers laid off throughout the exercise. Repots said that Kuku FM implemented the layoffs in order to save expenses. For content creation, the startup will probably use artificial intelligence (AI).

Financial Dynamics of Kuku FM

In the fiscal year 2023-2024 (FY24), Kuku FM's income more than doubled to INR 88 Cr from INR 41.1 Cr in the prior fiscal year. From INR 116 Cr in FY23, its loss decreased by 18% to INR 96 Cr. While its content development costs more than tripled to INR 11.2 Cr, its marketing expenditures increased 37% year over year to INR 48 Cr. Kuku FM, which was founded in 2018 by Bisu, Vikas Goyal, and Vinod Kumar Meena, provides audio programming in a variety of categories, including news, education, entertainment, self-help, personal finance, mythology, spirituality, and inspiration.

At the moment, it asserts that its platform hosts over 150K hours of content in a variety of formats. The startup provides audiobooks in a number of regional languages, including Tamil, Hindi, Bengali, and Marathi. It contains English-language information as well.

Funding Raised

Nearly a year has passed since the business raised $25 million in its Series C fundraising round, which was co-led by International Finance Corporation and The Fundamentum Partnership and included Vertex Ventures. To date, it has raised $72 million in investment. Among its investors are Krafton and Shunwei Capital. It should be noted that the reorganisation process was carried out about a month after Pocket FM, a rival of Kuku FM, announced layoffs. According to reports, Pocket FM fired about 50 workers worldwide in a variety of roles. Earlier this year, Pocket FM had let go of almost 200 journalists working in the United States.

Layoffs a Common Scenario in Indian Startup Sector

In the first half of 2024, Indian startups laid off fewer workers than they did in the same period last year, suggesting that the industry may be nearing the end of its worst layoffs, albeit it is still far from done.

According to data from executive search agency Longhouse Consulting, startups reduced employment by approximately 11,250 between January and June of this year, compared to 21,000 in the first half of 2023 and 15,000 in the second half.

While layoffs may have decreased from their 2023 highs, industry executives and hiring experts warned that they are still happening as startups face a tight funding environment and an emphasis on cost-cutting, particularly for those getting ready for an IPO.