Kuku Technologies Secures SEBI Approval for INR 3,500 Crore IPO

Kuku Technologies, an over-the-top (OTT) music service, has finally gotten the go-ahead from SEBI to list, following months of secretly filing its initial public offering (IPO) paperwork. In accordance with its most recent report, SEBI had sent an observation letter on Kuku's offer paperwork on September 11.

When SEBI issues an observation letter, it means the regulator has approved a company's plan to launch a public offering. In June, Kuku submitted their private DRHP to the SEBI. The size of the IPO might be anywhere from INR 2,500-3,500 Cr ($261-366 Mn), with a possible valuation of INR 15,000 Cr (approximately $1.8 Bn), according to media reports.

Kuku’s IPO Plans & its Market Performance

An offer-for-sale component and a new issuance of shares will make up the IPO. The money will be used by Kuku to improve their tech, AI infrastructure, and content development and to expand to other regions. Kuku FM, which was founded in 2018 by Vikas Goyal, Lal Chand Bisu, and Vinod Meena, delivers audiobooks, podcasts, and original audio programming.

In addition, it runs the microlearning site Guru and the microdrama platform Kuku TV. Investors such as Fundamentum Partnership, Krafton, Vertex Ventures, IFC, and 3one4 Capital have contributed to Kuku's over $156 million in funding thus far. Earlier in October 2025, Granite Asia spearheaded a Series C fundraising round for the company, which raised $85 million. Kuku TV even managed to enlist the help of former Indian cricket captain Mahendra Singh Dhoni earlier this year, who is both an investor and the channel's brand ambassador.

Rising internet penetration and the number of people with access to smartphones are predicted to propel the microdrama market from its current $1.5 billion to $6.5 billion by 2033. In this market, Kuku has competition from Pocket FM, Miniplix, ReelSaga, Flick TV, Amazon, JioHotstar, and Zee5.

Kuku Technologies Announces Hiring Plan

Kuku Technologies is planning to double the size of its new AI-native production unit by 1,000 employees by the end of the current fiscal year. The main objective of this hiring is to expedite the production of content at a fraction of the standard cost. The company has recruited around 200 individuals for the Mumbai division so far. The new recruits bring a unique blend of creative, technical, and AI-first expertise, which will drastically reduce production time and costs.

According to those keeping tabs on Kuku's AI initiatives, the firm has been secretly developing an AI Storytelling Stack, The company is also using knowledge gained from thousands of pieces of content, billions of data points on user consumption, and years of operational expertise. Kuku is constructing an integrated stack that spans several sections of the storytelling and production pipeline, instead than developing discrete AI technologies. In the long run, Kuku anticipates that its AI bet will generate 80–90% of its revenue.