Kuku FM in talks to raise $70 M from Granite Asia amid RBI concerns
Kuku FM is reportedly in talks to raise $70 million from Granite Asia, even as the platform faces scrutiny amid RBI concerns over digital lending and compliance.
Kuku FM in talks to raise $70 M from Granite Asia amid RBI concerns
Mumbai, June 19
Bengaluru-based audio content platform Kuku FM is in advanced talks to raise about $70 million in a fresh funding round led by Singapore-based Granite Asia, according to a media report.
The deal is expected to value the company at approximately $500 million, nearly three times its valuation of $177 million in September 2023. The fundraising comes at a time when the company is under scrutiny over its user acquisition and monetisation strategies.
Media reports and consumer rights advocates have flagged Kuku FM, Seekho, and Stage for using “dark patterns”—design techniques in app interfaces that may lead users into unintended purchases or subscriptions.
Granite Asia (formerly Granite Global Ventures) is likely to contribute $50 million, while the remaining $20 million is expected from existing investors, including Fundamentum Partnership and IFC. The round is structured as a primary capital infusion, aimed at expanding Kuku FM’s regional content catalogue, enhancing creator partnerships, and improving platform engagement and retention.
Complaints include mislabelled ₹1 or ₹2 trial offers that automatically convert into paid subscriptions ranging from ₹149 to ₹699, often without clear opt-in consent. The Ministry of Consumer Affairs in December 2023 released guidelines targeting such manipulative designs.
Users have flagged that Kuku FM used tactics like "confirm shaming", auto-renewal defaults, and ambiguous cancellation processes - basically stating that the platform operates in user practices ethically grey areas.
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