Scale at Kuku FM rises 9X with 95 Cr Spent On Advertising
Who doesn’t like listening to audio content on Kuku FM? Nobody, correct? Let’s see how our love towards audio content and Kuku FM’s marketing practices have benefited India’s leading audio content platform.
Despite a dramatic rise in usage of audio OTT apps over the past few years in India, most of them are still having trouble attracting paying subscribers. Kuku FM, an audio platform based in Mumbai, has defied this tendency.
About Kuku FM
Kuku FM is a non-music audio platform that was established in 2018 by Lal Chand Bisu, Vikas Goyal, and Vinod Kumar Meena. It provides exclusive audio material in genres like book summaries, audiobooks, courses, and motivational talks, among others.
In addition to English, Kuku FM has since introduced programmes in seven additional regional languages since it first started with Hindi. The platform of the startup now hosts over 40,000 pieces of content.
60% of the 50,000 creators on Kuku FM at the moment are female. Only once it has been selected by the platform’s crew for publication, a creator’s material is made available on it.
Kuku FM, a platform for audio material funded by Fundamentum, was able to increase its collection by 9.3X in the preceding fiscal year, which ended in March 2023. According to its annual financial records submitted to the Registrar of Companies, Kuku FM’s revenue from operations increased to Rs 41.2 crore during FY23 from Rs 4.4 crore in FY22.
How is Kuku FM funded?
Through paid subscriptions for its audiobooks from both individuals and companies, Kuku FM makes money. It offers audio content for various categories ranging from business, self-help to fitness etc. The business also ventured into employee upskilling during the second quarter of the previous fiscal, offering a variety of courses on productivity, discipline, task management, etc.
To further diversify its revenue source, Kuku FM also works with content producers and publishers, splitting the profits from their premium content, and may even provide branded partnerships and sponsored shows. It’s important to remember that Kuku FM’s specific revenue mix changes over time as it adjusts to market trends and customer preferences.
Spending by the Company
Directly speaking, marketing and advertising expenses accounted for 57.3% of total spending. From Rs 31.9 crore in FY22 to Rs 94.7 crore in FY23, this expense increased dramatically. The Gurugram-based company invested between Rs. 11.2 crores for the creation of audio content and Rs. 15.6 crore towards information technology. Overall, spending increased by 190% to Rs 165.4 crore, while losses at Kuku FM increased by 2.23X to Rs 116.5 crore in FY23. In the most recent fiscal year [FY23], the company spent Rs 4.02 to generate one unit of operating revenue.
The Last Few Words
In certain niches, OTTs are even displacing radio, and in an information-hungry nation like India, finding popular streams is simpler than ever. Bisu explained that Kuku FM works on three routes for user acquisition: performance marketing, creator-led marketing on YouTube, and organic. The growing market for audio material presents Kuku FM with many difficulties, but with perseverance and great content, the company was able to succeed. If you found this article interesting, be with us for more such content!