Kuku Technologies Becomes Profitable Ahead of IPO
Digital media company Kuku Technologies reported its first net profit of Rs 182.7 crore for FY26, driven by a sixfold surge in revenue to Rs 1,484.2 crore. The company is preparing for an initial public offering.
Kuku Technologies, the digital media and entertainment startup behind microdrama app Kuku TV and audio storytelling platform Kuku FM, has achieved profitability ahead of its planned initial public offering (IPO). The company reported a net profit of Rs 182.7 crore for the financial year ended March 31, 2026, a significant turnaround from a net loss of Rs 152.6 crore in the previous fiscal year.
The financial reversal was primarily fueled by a sixfold increase in revenue. Operating revenue jumped to Rs 1,484.2 crore in FY26, up from Rs 241.6 crore in FY25. Subscription fees constituted the largest portion of revenue, contributing Rs 1,475.4 crore. India accounted for approximately 99% of Kuku Technologies' operating revenue.
The Google-backed Kuku Technologies is reportedly targeting an IPO valuation of Rs 15,000 crore. The company has confidentially filed draft papers for an IPO estimated to be between Rs 2,500 crore and Rs 3,500 crore ($260-360 million). India's Securities and Exchange Board of India (SEBI) has issued an observation letter, signaling approval to proceed with the IPO plans.
Total expenses more than tripled to Rs 1,421.8 crore, compared to Rs 411 crore in FY25, largely due to increased spending on advertising and marketing. Kuku is also expanding its microdrama business globally by building a 1,000-member AI-focused content production team. The company faces intensifying competition in the microdrama space from established players and new entrants.