Kuku FM FY25 Financials: Revenue Hits ₹242 Cr as Platform Aggressively Pursues Growth Ahead of IPO
MUMBAI — Kuku FM, India’s leading vernacular audio-storytelling platform, has reported a massive 175% surge in operating revenue, reaching ₹242 crore for the fiscal year ending March 2025 (FY25). While the company has demonstrated explosive growth for the second consecutive year, its push for market dominance came with a significant price tag: a marketing spend of ₹285 crore, which contributed to widening net losses.
The Growth Engine: Subscriptions and Scale
The Mumbai-based startup, backed by Krafton and Fundamentum, saw its revenue jump from ₹88 crore in FY24 to ₹242 crore in FY25. This growth is primarily driven by its paywalled subscription model, which has found a loyal audience in Tier 2 and Tier 3 cities. Kuku FM currently offers over 100,000 hours of content across 14 regional languages, including Hindi, Tamil, Telugu, and Marathi.
Despite the rise in revenue, the company's net loss widened by 59%, reaching ₹153 crore in FY25 compared to ₹96 crore in the previous year.
Financial Highlights: FY25 vs FY24
| Metric | FY24 (Actual) | FY25 (Reported) | Change (%) |
| Operating Revenue | ₹88 Cr | ₹242 Cr | +175% |
| Marketing Expenses | ₹102 Cr | ₹285 Cr | +179% |
| Total Expenses | ₹200 Cr | ₹411 Cr | +105% |
| Net Loss | ₹96 Cr | ₹153 Cr | +59% |
| Unit Economics | ₹2.27 spent per ₹1 earned | ₹1.70 spent per ₹1 earned | Improved Efficiency |
Marketing Blitz and Operational Costs
Advertising and marketing remained the largest cost center for Kuku FM, accounting for nearly 70% of its total expenditure. The company spent ₹285 crore on user acquisition and brand building, nearly tripling its spend from the previous year.
However, management pointed toward improving unit economics as a sign of long-term sustainability. The platform now spends ₹1.70 to earn every rupee of revenue, a notable improvement from the ₹2.27 spent in FY24. Other significant costs included:
Employee Benefits: Rose 28% to ₹60 crore.
IT & Technology: Increased to ₹27 crore.
Content Creation: While lower than marketing, investment in exclusive IPs and its in-house GenAI studio remains a strategic focus.
IPO on the Horizon
The financial report comes at a time when Kuku FM is reportedly gearing up for a public market debut. The company has allegedly shortlisted investment banks—including Kotak Mahindra Capital, Axis Bank, and Morgan Stanley—to lead a potential ₹3,000 crore ($200 million) IPO in 2026.
The proceeds from the IPO are expected to be used for further expanding the content library and strengthening its presence in the micro-drama segment through its new vertical, Kuku TV.
Investor Confidence
Earlier in 2025, Kuku FM secured $85 million in Series C funding led by Granite Asia, valuing the company at approximately $550 million. Current lead investors include The Fundamentum Partnership (12.79%), Vertex Ventures (11.12%), and Krafton (10.17%).