Jul 14, 2026 7:29pm IST
Microdrama Platforms Set Sights on Public Markets as Investor Interest Grows (EXCLUSIVE)
Vertical storytelling streamer Kuku Technologies Ltd has filed confidentially for an IPO to raise Rs 3,500 crore at a target valuation of Rs 15,000 crore, while more microdrama platforms are reportedly planning to go public in the coming months. Industry experts reflect on what is driving investor interest and whether the microdrama boom can translate into long-term value in the public markets.
The First Player Advantage
Kunj Sanghvi, vice-president and head of content at Kuku Technologies, refuses to divulge details about the IPO, citing SEBI guidelines, but gives us the lowdown on how they secured a first-mover advantage in the microdrama market. He says, “Our audio stories with AI-generated visuals were getting excellent engagement.” A trip to South Korea was an eye-opener for the firm regarding digital storytelling.
After seeing a Korean cab driver watch “Baahubali” films in the microdrama format, they decided to work on their content. He elaborates, “We realized this kind of narration suited our audiences, many of whom did not have access to premium storytelling. I feel Indian studios were more inspired by Western studios that focused on web series and OTT shows. They missed out on the digital storytelling trend popular in South Korea, Japan and China. These nations are importing content to the US and UK, which is repackaged to suit the West. We are building a library so that we can be exporters of microdrama content to the world.”
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IPO Move Buoys Industry
Anshita Kulshrestha, founder and CEO of TukTuki, is ecstatic about this new industry benchmark. She says, “We are seeing a massive, undeniable demand for mobile-first entertainment. The conversation has completely moved past ‘Can micro-dramas work?” to “How fast can we scale globally?’ The long-term potential here is limitless.”
Salone Sehgal, founder and MD, Lumikai, a major investor in Story TV, a microdrama platform, feels this vertical is well-suited to how Indians consume mobile-first entertainment. Sharing observations from Lumikai’s State of India Interactive Media Report, she opines, “The report found that the category grew into a $300 million market in CY25 (2025) and is projected to reach $4.5 billion by 2030 at a 31% CAGR (Compound Annual Growth Rate). We’re also seeing strong consumer adoption, with platforms such as ours recently crossing 100 million installs. Together, these developments show that microdramas are becoming a meaningful part of India’s digital entertainment landscape.”
She further adds, “Capital follows consumer behavior, and we are beginning to see that play out in microdramas. Our research shows the category has already reached approximately $15 ARPPU (Average Revenue Per Paying User), alongside 100 million monthly active users and nearly an hour of average daily usage. Together, these are strong signals of a category that is building both consumer demand and monetization.” There is a growing investor appetite for technology-led consumer businesses that are able to deliver sustainable growth and monetization.
Manohar Singh Charan, Co-founder and CFO, ShareChat, Moj and Quick TV, feels this is not just about a single company. He says, “As the category matures, we expect more platforms to explore diverse funding avenues, including public markets, provided they can demonstrate sustainable user growth, deep user engagement, solid user retention and high-quality revenue rather than pass-through revenue heavily reliant on continuous marketing spends.”
Inspiring Investor Confidence
Nitin Burman, CRO, Balaji Telefilms, feels this IPO is a landmark move for several reasons. He explains, “Traditionally, entertainment has often been viewed as a hit-driven business. Microdrama is helping change that perception because it introduces a more data-led, scalable and agile content model. Faster production cycles, lower capital intensity and the ability to continuously test audience preferences make the business fundamentally different. For investors, this demonstrates that entertainment today is not just about creating content, it’s also about building IPs, leveraging technology, understanding consumer behavior and creating sustainable revenue streams. We believe the broader entertainment sector will increasingly be viewed as a structured, high-growth digital business rather than only a creative industry.”
Sehgal is confident that microdrama IPOs will catch investors’ notice in the public markets. She opines, “Microdrama platforms are next-generation, technology-first entertainment businesses. The strongest platforms can command diversified revenue streams spanning subscriptions, advertising, commerce and in-app purchases. Fundamentally, incumbent microdrama platforms are large publishers with millions of users, predictable engagement and monetization, which will evolve into new-age content powerhouses and ad-tech platforms and offer a compelling public market opportunity.”
Microdramas vs Movies
The film industry is still recovering from the impact of the pandemic, with fewer movies being made across industries. This is in sharp contrast to the microdrama industry. Sehgal shares, “Unlike film production, which is often capital-intensive, time-consuming and hit-driven, microdrama platforms have been built as entertainment technology businesses, which are asset-light. Additionally, content velocity is very high. That creates a very different business model.”
Singh Charan highlights the unique recommendation system of microdramas that gives it an edge. He says, “Unlike movies or OTTs, 90 per cent of micro-drama discovery happens through social media feeds on platforms like Moj. This aspect has profound implications for how the format has evolved and the vectors defining success in this space. While distribution enables market penetration, a strong recommendation system remains a critical ingredient required to ensure continuous engagement and repeat consumption behavior.”
India’s Microdrama Market Eyes China-Scale Growth
The revenues of the microdrama market have exceeded that of films in China. Burman elaborates, “China offers an interesting reference point for how quickly this format can evolve into a mainstream industry. As companies continue to build quality IP, demonstrate sustainable monetization and maintain responsible corporate governance, we expect institutional confidence in the entertainment sector to grow substantially.” The next year will be an important one for the industry with more smartphone usage, affordable data and advertiser interest. “I foresee thrice as much growth in active paying users by March 2027. The hunger for authentic, bite-sized regional content in Tier-2 and Tier-3 markets is massive,” Kulshrestha signs off.
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