"The post-money valuation of the current is expected to be around $500-550 million…the investors are currently undertaking due diligence and documentation," said a second person mentioned earlier.

Kuku FM's ongoing fundraise has been positioned around rising demand for code-based mini dramas, reflecting investor interest in short-video and serialized micro-drama formats, the person added.

Emails to Kuku FM co-founder Lal Chand Bisu and the company went unanswered until press time. A Krafton spokesperson said, "As part of KRAFTON's policy, we do not comment on matters related to our portfolio companies."

Existing investors like Nandan Nilekani's Fundamentum Partnership, India Quotient might participate in the round, said one of the persons quoted above.

Kuku FM last raised $25 million in its Series C round in September 2023, co-led by Fundamentum Partnership and the International Finance Corporation, with Vertex Ventures also participating. At the time, the company was valued at about $185 million post-money.

In all, Kuku FM has raised roughly $70 million in equity to date from a mix of domestic and global investors, including Google, Paramark, 3one4 Capital, V Cube Ventures, India Quotient, FounderBank Capital, and Vertex Ventures, alongside Fundamentum and Krafton in previous rounds.

Krafton, which previously led Kuku FM's $19.5 million Series B in 2022, has been expanding beyond games into consumer content in India, and remains among Kuku FM's notable backers. Kuku FM's founders collectively hold about 20% of the company, as per its latest cap table. Fundamentum Partnership is the largest institutional shareholder with roughly 12.8% ownership, followed by Vertex Ventures at about 11.1%. Krafton currently owns approximately a 10.2% stake in Kuku FM, according to data from private market intelligence platform Tracxn.

Kuku FM's rival Pocket FM has also appointed Goldman Sachs to raise $100-150 million to fund its global expansion, Mint reported this week.

Kuku FM, founded in 2018 by Lal Chand Bisu, Vinod Meena and Vikas Goyal, began as an audio platform and offers creation tools that allow users to produce and publish original shows across multiple Indian languages. It last claimed to work with over 30,000 creators on its platform and more than 2.5 million active paid subscribers.

Market expansion

While the platform initially focused on audiobooks in genres such as self-help, personal finance, romance and spirituality, it increasingly positioned itself as a creator-led platform commissioning and hosting original audio series with monetization via subscriptions.

Separately, the platform also operates Kuku TV, a video-focused app distinct from Kuku FM's audiobook-led service, featuring short-form and mini-drama programming and has been adding new titles daily. Mint reported earlier that the platform is adding more than 200 new shows in a single month with multiple micro-dramas crossing 50 million views each.

The market has drawn a crowded slate of challengers, including venture capital-backed players such as Flick TV (funded by Stellaris Venture Partners), Dashverse (funded by Peak XV), and Zee Entertainment's Bullet. While established media firms and social platforms are scaling efforts via their own platforms such as Balaji Telefilms' Kutingg, Sharechat's Moj, and QuickTV, Mint reported last week.

Analysts estimate India's short-form video and micro-drama ecosystem is currently clocking about $50 million in monthly revenue, or roughly $600 million annually, with more than 300 million users and a potential to expand to an $8-12 billion market by 2030, according to business consulting firm Redseer.