Kuku FM Growth and Financial Performance in FY25

Kuku FM has showcased remarkable growth as it nearly tripled its scale in FY25. Following a 114% increase in revenue year-on-year in FY24, the audio content platform registered a significant 175% rise in scale in FY25. Nonetheless, the firm preparing for an IPO experienced a deeper dip in losses during this period due to elevated advertising expenditures.

Kuku FM’s operational revenue soared to Rs 242 crore in FY25, up from Rs 88 crore in FY24, based on financial records from the Registrar of Companies (RoC). This platform provides a wide array of audio content spanning various genres including business, self-improvement, personal finance, history, religion, entertainment, and fitness. The only income source for Kuku FM was paywalled subscription sales. Additionally, the firm earned Rs 16 crore from other income, raising its total revenue to Rs 258 crore in FY25.

The notable increase in revenue was paralleled by a significant rise in expenses. Kuku FM’s total expenses more than doubled, reaching Rs 411 crore in the last fiscal year compared to Rs 200 crore in FY24. Advertising costs became the largest expense, comprising nearly 70% of total spending. This cost escalated by 2.8 times to Rs 285 crore in FY25 from Rs 102 crore in FY24. Employee benefit expenses grew by 28% to Rs 60 crore, and technology-related expenses also increased by 28% to Rs 27 crore during the year. Depreciation expenses tripled to Rs 9 crore during the same timeframe.

This aggressive expenditure led to a 59% increase in Kuku FM’s losses, amounting to Rs 153 crore in FY25, up from Rs 96 crore in FY24. Its ROCE and EBITDA margins were recorded at -163.73% and -65.29% respectively. On a per-unit basis, the firm spent Rs 1.70 to generate a rupee of operational revenue in FY25, a decrease from Rs 2.27 in FY24. The company reported Rs 268 crore in current assets, which included Rs 117 crore in cash and bank balances throughout the year.

Various reports indicate that Kuku FM has attracted a total of $157 million in funding to date. The leading investors include The Fundamentum Partnership, Vertex Ventures, and Krafton, holding stakes of 12.79%, 11.12%, and 10.17% in the company, respectively. Kuku FM is also preparing for its entry into public markets. The audiobooks and storytelling platform has reportedly selected four investment banks to assist in raising up to Rs 3,000 crore through its forthcoming initial public offering (IPO). This proposed IPO is anticipated to include a combination of fresh issuance and an offer for sale (OFS).