Kuku FM parent gets SEBI nod for Rs 3,500 crore IPO, eyes stock market listing in 2027

Kuku Technologies has received approval from SEBI for its planned ₹3,500 crore IPO, with a stock market listing targeted for the first half of 2027.

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Kuku Technologies, which owns Kuku FM and Kuku TV, has been granted an observation letter by the Securities and Exchange Board of India (SEBI) regarding its planned initial public offering (IPO). In June 2026, the company submitted its draft IPO documents to SEBI on a confidential basis.

The proposed ₹3,500 crore IPO of the Kuku FM parent may consist of a fresh issue of shares along with an offer for sale (OFS) by existing investors. Depending on market conditions, the final issue size and valuation could be revised.

Kuku Technologies is now anticipated to submit an updated prospectus to SEBI. The company aims to list on the stock market during the first half of 2027.

According to reports, Kuku Technologies intends to raise as much as ₹3,500 crore via the IPO. Previous reports had put the company’s target valuation at roughly ₹15,000 crore, against its earlier private-market valuation of about ₹4,500 crore. The final valuation, though, will hinge on market conditions and how the IPO is ultimately structured.

New Issue and Offer for Sale

The proposed IPO is anticipated to comprise two parts:

• A new issue of shares aimed at raising fresh capital.
• An offer for sale that lets existing investors sell their shares.

The new capital is anticipated to back Kuku Technologies’ future growth plans.

The company intends to allocate the newly raised funds across a number of key areas. These encompass bolstering its technology and artificial intelligence infrastructure, boosting content output, and entering new markets.

Investing in AI and Technology

Artificial intelligence has grown into a key element of Kuku’s content strategy. The company has been leveraging AI to assist with content creation, enhance personalization, and boost operational efficiency.

Additional investment in AI infrastructure could enable Kuku to strengthen its capacity to produce and distribute digital content at scale.

Growth of Content Creation

Kuku works within both audio and video entertainment. As a result, content continues to be central to its growth strategy.

The company is additionally establishing an AI-driven content production unit in Mumbai, aiming to boost production capacity and control content expenses.

Breaking Into New Markets

Kuku also intends to allocate a portion of the newly raised funds toward expanding into new regions. The company has already begun preparing for international expansion, which includes potential opportunities in the US market.

Kuku Technologies started out with Kuku FM, a platform for audio storytelling. As time went on, the company broadened its portfolio of digital entertainment.

In 2024, it introduced Kuku TV, a platform dedicated to short-form vertical microdramas. Kuku additionally runs Guru, a platform for edutainment and micro-learning.

Kuku TV Fuels Business Expansion

Reports indicate that Kuku TV has become the biggest driver of the company’s business. The rise of short-form entertainment has additionally opened up fresh opportunities for digital content firms in India.

As a result, the company is moving past audio storytelling and creating a wider mobile entertainment ecosystem.

Kuku has established a sizable user base throughout its digital platforms. Reports from September 2026 indicated that the company’s ecosystem had surpassed 400 million app installs, along with over 10 million paying subscribers. It also boasts a creator community exceeding 50,000 individuals.

These figures underscore the scale of Kuku’s digital content business and offer context for its ambitions to expand further.

Kuku Technologies has likewise reported substantial growth in revenue. Its operating revenue rose from ₹241.5 crore in FY25, while reports suggested that revenue came to roughly ₹1,400 crore in FY26.

The company has also been striving for operational breakeven even as it invests in content, technology, and expansion.

Nevertheless, the company’s final financial standing, IPO valuation, and issue structure will be clearer once updated public documents are filed.

Now that the SEBI observation letter has been received, Kuku Technologies has taken another step toward becoming a publicly traded company.

The company aims to list during the first half of 2027. Prior to that, it is anticipated to submit an updated draft prospectus and finish the remaining regulatory and IPO procedures.

What Takes Place After This?

The upcoming phases are anticipated to consist of:

• Submitting the revised prospectus to SEBI.
• Releasing the pertinent IPO details to the public.
• Carrying out the regulatory and exchange-linked procedures.
• Determining the final IPO size, pricing, and structure.
• Bringing the public issue to market ahead of the intended listing.

The schedule and final specifics could shift based on regulatory mandates and market circumstances.

The proposed IPO from Kuku Technologies arrives as India’s digital entertainment sector keeps evolving. Consumers are engaging more and more with short-form video, audio stories, microdramas, and mobile-first entertainment.

The company’s growth across various formats mirrors this shift in consumer behaviour.

In addition, a successful public listing could provide Kuku with more access to capital for technology, content creation, and global expansion. Simultaneously, the public-market journey will invite closer scrutiny of financial performance, growth, governance, and long-term business sustainability.

Kuku Technologies’ SEBI clearance for its planned ₹3,500 crore IPO represents a significant milestone in the company’s growth story. The parent company of Kuku FM and Kuku TV intends to deploy fresh capital toward strengthening AI and technology infrastructure, scaling up content production, and entering new markets.

With a stock market listing planned for the first half of 2027, Kuku Technologies is gearing up to bring its digital entertainment business to the public markets. Nevertheless, the final IPO size, valuation, and timeline will hinge on subsequent filings and market conditions.

As Kuku keeps growing across audio, microdramas, and edutainment, its forthcoming IPO could prove to be a key milestone in the evolution of India’s new-age digital entertainment sector.