Google-backed audio content platform Kuku FM has raised $25 million in a new funding round as it aims to move deeper into the South Asian market with its audiobook offerings.
Indian billionaire and technologist Nandan Nilekani’s Fundamentum Partnership led Kuku FM’s Series C funding with the International Finance Corporation, part of the World Bank. He said Temasek-backed Vertex Ventures also participated in the new funding round, the five-year-old startup also counts 3one4 Capital and Krafton among its backers.
Kuku FM, which has raised more than $60 million to date, operates an audio platform of the same name that offers more than 150,000 hours of content in genres such as personal finance, romance, religion, and self-help. This content is available in India’s six languages and English and is locally relevant, helping Kuku FM penetrate deeper into consumers in India’s smaller cities, towns and villages. Ta.
The startup doesn’t display ads or offer free content, and only allows users to sample some of the episodes within the series. Instead, it charges INR 99 (equivalent to $1.2) for a monthly subscription and INR 999 for an annual subscription, which gives users unlimited access to its content.
The startup more than doubled its revenue last year and is now on track to generate $15 million in annual revenue, Kuku FM co-founder and CEO Lal Chand Bisu said in an interview with TechCrunch. he said. The company aims to be profitable by the end of next year.
India is increasingly consuming audio content due to the proliferation of affordable smartphones and internet access. As huge numbers of Indians join online communities, there is a growing demand for content that resonates with their tastes and is available in their preferred languages.
Amazon is expanding its work with Audible in India, partnering with local production companies to enrich the platform’s offerings.
Kuku FM is gaining wider market share with its unlimited consumption model, rather than charging consumers per content. Bisu said the platform is working with more than 30,000 professional content creators who contribute titles to the platform. To ensure quality, the startup employs a rigorous vetting process.
“Kuku FM has created a niche category that caters to the unique and rapidly evolving demands of India’s new digital natives,” Fundamentum Partnership principal Prateek Jain said in a statement. “Additionally, Bisu and the team have shown great understanding when it comes to building a business model focused on unit economics and robust fundamentals.”
Biss said Kuku FM will use the new funding to expand its catalogue, with a particular focus on expanding its educational content offering.
