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Google-backed audio content platform Kuku FM has raised $25 million in a new funding round as it looks to penetrate deeper into the South Asian market with its audiobook offering.
Indian billionaire Nandan Nilekani’s Fundamentum Partnership co-led the Series C financing in Kuku FM. International Finance Corporation, part of the World Bank, co-led the round, which saw participation from Temasek-backed Vertex Ventures, Google, Krafton, 3one4 Capital, Indian Quotient and FounderBank Capital, the six-year-old startup said.
Kuku FM, which has raised more than $60 million to date, operates an eponymous audio platform that offers more than 150,000 hours of content in genres such as personal finance, romance, religion and self-help. The content, available in six Indian languages and English, is relevant to the local context and has helped Kuku FM reach deeper into consumers in smaller Indian cities, towns and villages.
The startup does not serve ads or offer free content, allowing users to only watch parts of episodes within a series. Instead, it charges 99 Indian rupees (equivalent to $1.2) for a monthly subscription and 999 Indian rupees for an annual subscription, giving users unlimited access to the content.
Lal Chand Bisu, co-founder and CEO of Kuku FM, told TechCrunch in an interview that the startup has more than doubled its revenue in the past year and is currently on track to generate $15 million in revenue annually. The goal is to be profitable by the end of next year, he said.
Audio content consumption is becoming increasingly popular in India, thanks to the widespread availability of affordable smartphones and internet access. With large numbers of Indians joining the online community, there is a growing demand for content that suits their preferences and is available in their preferred language.
Amazon is also expanding its footprint with Audible in India, partnering with local manufacturing entities to enrich the platform’s offerings.
Kuku FM has captured greater market share thanks to its unlimited consumption model, rather than charging consumers for each piece of content. Bisu said the platform partners with more than 30,000 professional content creators who contribute their titles to the platform. To guarantee quality, the startup uses a rigorous audit process.
“Kuku FM has created a niche category that caters to the unique and rapidly evolving demands of India’s new digital residents,” Prateek Jain, managing director of Fundamentum Partnership, said in a statement. “Additionally, Bisu and his team have demonstrated great acumen in creating a business model with a strong focus on unit economics and robust fundamentals.”
Kuku FM plans to use the new funding to expand its catalogue, with a particular focus on broadening its range of educational content, Bisu said.