Mebigo Labs, the parent company of India’s fast-growing vernacular audio platform Kuku FM, has appointed merchant bankers for a potential USD 200 million (~INR 1,800 crore) IPO, according to a report.
The Mumbai-based company has roped in Kotak Mahindra Capital, Axis Bank, and the Indian investment banking arm of Morgan Stanley to manage the proposed share sale. While discussions remain ongoing and the final size and structure of the offering are yet to be locked in, the appointment of top-tier bankers signals that Mebigo Labs IPO preparations have moved beyond exploratory stages.
Mebigo Labs IPO Proceeds to Fuel Content Expansion
The report indicates that proceeds from the offering will be primarily deployed towards expanding Kuku FM’s content library, strengthening its regional-language portfolio, and deepening investments in technology and creator ecosystems. Representatives of Mebigo Labs and the appointed banks have declined to comment.
Kuku FM IPO comes at a time when India’s primary markets are witnessing renewed momentum. Strong retail participation, coupled with consistent institutional demand, has pushed total fundraising in the current year to INR 1.77 lakh crore, surpassing last year’s INR 1.54 lakh crore —according to IPO Central’s data centre.
Kuku FM: Building Scale in Vernacular Storytelling
Founded in 2018 by Lal Chand Bisu, Vikas Goyal, and Vinod Kumar Meena, Kuku FM has emerged as one of India’s most prominent audio-first, vernacular content platforms. The company offers audiobooks, stories, summaries, and serialized shows across multiple Indian languages, catering to the country’s rapidly expanding base of mobile-first users.
The platform currently boasts over 10 million paying subscribers, positioning it among the few Indian consumer internet startups to achieve meaningful subscription-led scale outside metro-centric English audiences.
Beyond audio, Mebigo operates Kuku TV, a microdrama platform delivering long-form stories in short, vertical video episodes—aligning with the rising demand for snackable storytelling formats.
Mebigo Labs IPO Valuation & Capital Backing
Mebigo Labs recently raised USD 85 million (~INR 73 crore) in a Granite Asia–led Series C round in October 2025. The round also saw participation from Vertex Growth Fund, Krafton, IFC, Paramark Ventures, Tribe Capital India, and Bitkraft Ventures, and reportedly valued the company at approximately USD 500 million (~INR 4,550 crore) post-money.
This round enabled a partial exit for early investor 3one4 Capital and marked a sharp valuation step-up from the company’s USD 185 million post-money valuation in September 2023, when it raised USD 25 million from investors including Fundamentum Partnership and IFC.
To date, Kuku FM has mobilised roughly USD 155 million (~INR 1,400 crore) in equity capital from a diverse pool of global and domestic investors, including Google, India Quotient, Fundamentum, Vertex Ventures, Paramark, Krafton, and others.
Mebigo Labs IPO: Use of Funds
The recent capital infusion is being channelled into:
- Strengthening AI and data infrastructure
- Hiring across technology and content
- Deepening creator partnerships
- Scaling operations in India and select overseas markets
India’s digital audio and microdrama ecosystem is undergoing a structural expansion, driven by widespread smartphone adoption, low data costs, and frictionless micropayments via UPI. Kuku estimates the short-form audio and video market in India could reach USD 2 billion (~INR 18,000 crore) annually over the next five years, mirroring trends seen in China and the United States.
Industry analysts estimate the broader short-form video and microdrama market currently generates about USD 600 million (~INR 5,460 crore) in annual revenue, with the potential to scale to USD 8–12 billion (~INR 1.09 lakh crore) by 2030.
IPO Momentum & Fundamentum’s Exit Strategy
Mebigo Labs IPO plans also align with Nandan Nilekani–led Fundamentum Partnership’s broader strategy to prepare several portfolio companies—including Spinny, PharmEasy, FarEye, and Kuku FM—for public listings over the next 12–24 months. Venture funds, facing the dual pressures of returning capital and raising new funds, are increasingly viewing India’s revived IPO market as a viable exit route.
While Kuku FM is smaller in scale compared to peers like Spinny or PharmEasy, its category leadership in vernacular audio storytelling and improving monetisation profile make it a compelling emerging-stage public market candidate.
The move also comes amid intensifying competition. Rival Pocket FM has reportedly appointed Goldman Sachs to raise USD 100–150 million for global expansion, while several venture-backed startups and legacy media companies are scaling their own microdrama and short-form platforms.
Outlook
Mebigo Labs’ decision to appoint merchant bankers marks a pivotal milestone in its transition from a high-growth private startup to a potential public market contender. If executed successfully, the Kuku FM IPO could not only provide liquidity to early investors but also establish it as one of the first large-scale vernacular audio platforms to test Indian public markets—setting a precedent for the next wave of consumer internet listings.
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