Kuku Technologies reported a net profit of ₹182.7 crore in FY26, reversing a ₹152.6 crore loss from the previous year. This sharp turnaround comes as the Google-backed company gears up for a planned IPO, targeting a ₹15,000 crore valuation. The growth is almost entirely from subscription fees for its microdrama and audio storytelling apps.
How We Got Here
Kuku confidentially filed its draft IPO papers in June, seeking ₹2,500-3,500 crore. SEBI issued an observation letter last month, clearing it for launch within a year.
The Numbers
- Its operating revenue surged sixfold to ₹1,484.2 crore in FY26, up from ₹241.6 crore in FY25.
- Subscription fees contributed ₹1,475.4 crore, accounting for over 99% of its revenue, with India making up ₹1,463.6 crore of that.
- Total expenditure grew threefold to ₹1,421.8 crore, with marketing and advertising expenses ballooning to ₹1,105.1 crore.
- Kuku claims over 10 million subscribers and 400 million installs across its microdrama (Kuku TV, StoRizz) and audio (Kuku FM) platforms as of June 2026.
- The company is reportedly building a 1,000-member AI-focused content production team for global expansion.
What Happens Next
🇮🇳 Why This Matters for India
For founders building content platforms targeting Tier-2 and Tier-3 cities, Kuku's subscription-led profitability validates a viable business model beyond ad revenue in India.
The Take
This profitability isn't a testament to content virality alone, but to the staggering ₹1,100 crore spent on marketing. The challenge for Kuku post-IPO will be proving this customer acquisition cost is sustainable for long-term growth.
Source:
MediaNama ↗