Kuku, an audio and microdrama platform in regional languages, has secretly filed its draft prospectus (DRHP) for its IPO, with an aim to raise between Rs 2,500 crore and Rs 3,500 crore. Founded in 2018 by Lal Chand Bisu, Vikas Goyal and Vinod Meena, the startup is targeting a maximum market cap of Rs 15,000 crore through a public listing. The fresh funds raised through the IPO will be used for the company's technology, AI infrastructure development, new content creation and business expansion into foreign markets.

The platform, which offers audio books and short videos under brands like Kuku FM, Kuku TV and Guru, currently has over one crore listeners and creators. The company, which uses its own generative AI (GenAI) technology to do advertising and local language translations, releases over 150 microdrama shows per month on Cuckoo TV. The startup, which has former Indian cricket captain M.S. Dhoni as an investor and brand ambassador, is preparing to enter foreign markets, including the US.

The rapidly growing Indian microdrama market is expected to reach a value of $6.5 billion by 2033. The growth of the sector is due to the increasing use of smartphones, cheap internet and the demand for local content. Major OTT platforms like Amazon, JioHotstar and Zee5 are also entering the field with their own microdramas, where Pocket FM is the main competitor.