Kuku Technologies gets SEBI approval to proceed with confidential IPO filing

MUMBAI: Kuku Technologies is turning the page from startup story to stock-market story, with the Bengaluru-based company securing SEBI’s approval for its confidential IPO filing.

The company behind audio storytelling platform Kuku FM, micro-drama service Kuku TV and learning app Guru had approached the capital markets regulator in June through the confidential filing route. The move now gives Kuku 18 months to take the proposed initial public offering to market.

The IPO is expected to combine a fresh issue of shares with an offer for sale by existing shareholders. Reports following the June filing had pegged the proposed fundraise at between Rs 2,500 crore and Rs 3,500 crore, with the company targeting a valuation of around Rs 15,000 crore, or approximately $1.8 billion.

The next leg of the process will involve Kuku filing an updated draft red herring prospectus, which will become publicly available, before filing the formal red herring prospectus with the Registrar of Companies once the offer window is finalised.

Four investment banks Kotak Mahindra Capital, Jefferies India, JM Financial and Axis Capital — are reportedly advising on the IPO process.

Kuku’s valuation has also climbed sharply in recent years. It was valued at around $177 million in September 2023 and reached $500 million when the company closed an $85 million funding round in October last year, representing almost a threefold increase over roughly two years.

While the IPO machinery gathers pace, Kuku is also betting on artificial intelligence to change how digital content is produced. Co-founder and COO Vinod Kumar Meena recently highlighted the impact of AI on production timelines, particularly in areas such as scripting.

According to Meena, a script development process that could previously take about a month, with multiple rounds between senior and junior writers, can now be compressed significantly through AI-assisted drafting. He said the technology can also allow junior writers to handle work that previously required a larger and more experienced team.

AI is also changing how quickly Kuku can test new products and business ideas. Meena said experimentation that once took around six months and required substantial capital can now produce an initial version in about a week with a small team. That faster cycle, he argued, could allow companies to move from testing around 10 ideas a year to testing hundreds.

Meena also pointed to changing consumer behaviour around paid digital content in India. He cited more than 200 million paying subscribers across services including Jio, Prime Video, Netflix and Zee as evidence that Indian consumers’ willingness to pay for digital entertainment has evolved significantly over the past decade.

For Kuku, the IPO process therefore arrives alongside a second transformation: from building digital content platforms to using AI to make experimentation and production faster. The company now has 18 months from SEBI’s approval to turn that private-market momentum into a public-market offering.