Indian Audio Content Platform Kuku FM Secures $25 Million in Funding with Google's Backing

Google-backed audio content platform Kuku FM has successfully secured $25 million in a recent funding round, focusing on expanding its audiobook services within the South Asian market. The Series C funding was led by Nandan Nilekani's Fundamentum Partnership, with participation from the International Finance Corporation (IFC), a part of the World Bank, and Vertex Ventures, backed by Temasek. Kuku FM, a five-year-old startup, has now raised over $60 million in total funding and boasts backers such as 3one4 Capital and Krafton.

Kuku FM operates a namesake audio platform, offering an extensive library of over 150,000 hours of content spanning various genres like personal finance, romance, religion, and self-help. This content is available in six Indian languages and English, catering to local preferences and helping the platform gain popularity in smaller Indian cities, towns, and villages.

Unlike many platforms, Kuku FM doesn't display ads or provide free content access. Instead, it offers a subscription model, charging 99 Indian rupees (approximately $1.2) for monthly access and 999 Indian rupees annually, granting users unlimited content access. According to Lal Chand Bisu, the co-founder and CEO of Kuku FM, the platform has more than doubled its revenue in the past year and aims to reach an annual revenue of $15 million. The startup has plans to achieve profitability by the end of the following year.

The popularity of audio content has been surging in India due to widespread smartphone availability and internet access. As more Indians join the online community, there is a growing demand for content that resonates with their preferences and is available in their preferred languages. Even Amazon is expanding its presence in India's audio content market through Audible, collaborating with local production entities to enrich the platform's offerings.

Kuku FM's success lies in its unlimited consumption model, distinguishing it from platforms that charge for individual content pieces. The platform collaborates with over 30,000 professional content creators, who undergo a rigorous vetting process to ensure quality. Prateek Jain, a Principal at Fundamentum Partnership, praised Kuku FM's innovative approach, catering to the evolving demands of India's digital natives while maintaining a strong focus on sound business fundamentals.

Kuku FM intends to utilize the newly acquired funds to further expand its content catalog, with a specific emphasis on enhancing its educational offerings.