IPO-Bound Streaming Platform Ullu Releases FY24 Results, Profit Drops 16% To INR 13 Cr In FY24

Ullu Digital, an OTT streaming company preparing for an IPO, saw its profit after tax (PAT) fall 16% to INR 12.68 crore in fiscal year 2023-24 (FY24) from INR 15.14 crore the previous year.

Despite a rise in revenue, the company’s profits fell. Ullu’s operating revenue increased by 7% to INR 99.67 crore in the fiscal year under review, up from INR 93.15 crore the previous year.

Including other income of INR 51.51 lakh, total revenue exceeded INR 100 crore.

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In February 2024, the OTT platform filed a draft red herring prospectus (DRHP) to be listed on the BSE SME platform. According to the draft filings, it intends to collect INR 135 crore to INR 150 crore through an initial public offering (IPO), which will only include a fresh issue of 62.63 lakh shares.

However, after filing the DRHP, the OTT platform encountered regulatory complications due to its pornographic material. In February of last year, the National Commission for Protection of Child Rights (NCPCR) recommended the Ministry of Electronics and Information Technology (MeitY) to take action against the OTT platform.

In a letter to the ministry dated February 27, NCPCR chairperson Priyank Kanoongo stated that the ‘Ullu’ app, which is available on both the Play Store and iOS, has “extremely obscene and objectionable” content that is accessible even to youngsters. This prompted a combined probe by SEBI, the Corporate Affairs Ministry, and MeitY.

Ullu’s IPO plans were delayed as a result of the dispute. Last month, its founder and CEO, Vibhu Agarwal, informed exchange4media that the company expects to go public in March 2025.

The OTT platform’s total expenses increased by 15% to INR 83.49 Cr from INR 72.33 Cr in the previous fiscal year.

Ullu’s spending on employees benefits increased by 41% to INR 11.89 crore from INR 8.43 crore the previous fiscal year.

The OTT platform spent INR 27.33 crore under the Purchase of Stock-in-Trade, a 13% decrease from INR 31.54 crore in FY23.

The company reduced their Advertising costs by 26% to INR 14.96 crore from INR 20.14 crore in FY23.

Ullu competes with Amazon’s MX Player, ALTBalaji, and others in the congested Indian OTT sector.