IPO-bound digital entertainment company Kuku Technologies has had a strong FY26, turning profitable as its revenue jumped nearly six times in just one year.
The company, which runs microdrama app Kuku TV and audio storytelling platform Kuku FM, reported operating revenue of Rs 1,484.2 crore in FY26, compared with Rs 241.5 crore in FY25.
The sharp growth came as Kuku expanded its microdrama business and invested heavily in bringing more users to its platforms.
Interestingly, Kuku’s marketing and advertising spending also saw a huge jump. The company spent Rs 1,105.1 crore on marketing in FY26, almost four times the Rs 284.8 crore it spent in FY25.
Despite the heavy spending, Kuku managed to move into profit.
The company reported a net profit of Rs 182.7 crore in FY26, compared with a loss of Rs 152.6 crore in FY25. However, the FY26 profit includes a deferred tax credit of Rs 98.2 crore. On a profit-before-tax basis, Kuku reported Rs 88.6 crore in FY26, compared with a loss of Rs 152.6 crore a year earlier.
Kuku’s IPO Plans
Kuku Technologies is also preparing for a public listing.
The company had confidentially filed for an IPO and is looking to raise around Rs 2,500-3,500 crore at a targeted valuation of around Rs 15,000 crore, or about $1.8 billion.
The IPO is expected to include both a fresh issue of shares and an offer-for-sale (OFS) component.
Last month, The Unicorn Magazine reported that Kuku had received approval from the Securities and Exchange Board of India (SEBI) to move ahead with its IPO plans.
How Kuku Makes Money
Subscriptions are the main source of Kuku’s revenue.
In FY26, subscriptions brought in Rs 1,475.4 crore, making up almost all of the company’s operating revenue.
Pay-per-piece purchases, where users use virtual coins to unlock content, contributed Rs 6.9 crore. Advertising revenue stood at Rs 1.9 crore.
India remains Kuku’s biggest market, contributing Rs 1,463.6 crore, or nearly 99% of its FY26 operating revenue. International markets contributed Rs 20.5 crore.
Where Did Kuku Spend Its Money?
While revenue grew sharply, Kuku’s expenses also increased as the company expanded.
Operational costs rose to Rs 96.3 crore in FY26 from just Rs 8.7 crore in FY25.
Employee benefit expenses increased by around 24% to Rs 74.1 crore from Rs 59.9 crore.
Overall, Kuku’s total expenses reached Rs 1,421.8 crore in FY26, compared with Rs 411 crore in FY25.
A major part of the spending went towards marketing and customer acquisition as Kuku worked to grow its microdrama business and subscription base.
From Audio Stories to Microdramas
Founded in 2018 by Lal Chand Bisu, Vikas Goyal and Vinod Meena, Kuku has grown into a wider digital entertainment company.
Its platforms include Kuku TV and StoRizz for subscription-based microdramas, Kuku FM for audio stories and Guru for micro-learning.
The company also operates Filmy, a curated movie content app, and FreeDrama, a free microdrama platform.
Kuku was last valued at $500 million when it raised $85 million in October last year. That valuation was nearly three times its $177 million valuation in September 2023.
So far, the company has raised around $158 million from investors including Granite Asia, Fundamentum, India Quotient, 3one4 Capital and Vertex Ventures.
Other backers include Krafton, IFC, Paramark, Tribe Capital India, Bitkraft and former Indian cricket captain Mahendra Singh Dhoni.
As of June 2026, Kuku said its apps had crossed more than 400 million installs and the company had over 10 million subscribers.
Kuku Is Going Big on AI
Artificial intelligence is becoming another major part of Kuku’s growth strategy.
The company is using AI across different stages of content creation, including ideas, scripts, production, distribution and audience engagement.
Kuku is currently producing around 500 microdrama shows every month across different genres. The company wants to take that number to more than 1,000 shows a month.
The company says AI has helped it increase production speed significantly.
Earlier, Kuku was producing around 200 shows a month using real actors with AI-assisted production. With more AI-driven systems now handling a larger part of the process, production has increased to around 500 shows every month.
The company has also said that it aims to reach around 1,200-1,300 shows every month by December.
Marketing Spend Crosses Rs 1,100 Crore
One of the biggest numbers in Kuku’s FY26 financials is its marketing bill.
The company spent Rs 1,105 crore on marketing and advertising during the year, compared with Rs 284.8 crore in FY25.
That means Kuku increased its marketing spending almost four times in a single year.
The spending helped the company push its content platforms, attract new users and grow its subscription business as microdramas became more popular in India.
But with such a large amount going towards customer acquisition, the next challenge for Kuku will be maintaining a healthy balance between marketing costs and revenue from its growing subscriber base.
With profitability, strong revenue growth, rising content production and an IPO in the pipeline, Kuku Technologies is now entering a very important phase of its journey.
