Mumbai-based vernacular audio platform Kuku FM’s operating revenue surged over 800% in the financial year ended March 31, 2023. The audio platform’s revenue from operations stood at INR 41.8 Cr in the financial year 2022-23 (FY23), a 9.3X increase from INR 4.41 Cr in the previous fiscal year.
The startup generates revenue by charging users for the audio content on the platform. Kuku FM claims to have over 25 Mn paid users. Including other income, its total revenue stood at INR 48.8 Cr during the year under review as against INR 4.8 Cr in the previous fiscal year.
Despite the sharp jump in operating revenue, Kuku FM’s net loss rose 2.2X to INR 116.5 Cr in FY23 from INR 52.2 Cr in the previous year.
Led by a rise in marketing expenses, the startup’s total expenses jumped almost 3X to INR 165.4 Cr from INR 57 Cr in the previous financial year.
On a unit economics basis, the startup spent INR 3.96 to earn every INR 1 from operating revenue during the year under review.
Marketing expenses surged 2.9X to INR 94.7 Cr in FY23 from INR 31.9 Cr in FY22. The startup earned every INR 1 in revenue from operations by spending INR 2.27 on marketing.
Meanwhile, employee benefit expenses also grew 2.3X to INR 34.8 Cr in FY23 from INR 14.7 Cr in the previous fiscal year.
Employee benefit expenses comprise employee salaries, PF contribution, gratuity, among others. A big increase in employee benefit expenses is an indication that the startup increased its employee headcount.
Kuku FM’s margin improved to -235.2% in FY23 from -1,084.5% in FY22.
Founded in 2018 by Lal Chand Bisu, Vikas Goyal, and Vinod Kumar Meena, Kuku FM offers audio content across genres such as audiobooks, personal finance, self-help, education, entertainment, news, mythology, spirituality and inspiration. It currently claims to host 150K+ hours of content in various formats on its platform.
Earlier this month, the startup raised $25 Mn in its Series C funding round co-led by The Fundamentum Partnership and International Finance Corporation (IFC), with participation from Vertex Ventures. The funding round came almost a year after Kuku FM bagged $21.9 Mn in Series B1 round.
Kuku FM has raised a total funding of over $70 Mn to date and counts iKRAFTON, 3one4 Capital, Vertex, among others, as its backers.
Kuku FM competes against Bengaluru-based Pocket FM, which bagged $16 Mn in debt funding from Silicon Valley Bank earlier this year.
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