Bengaluru-based audio content platform Kuku FM is in advanced negotiations to secure approximately $70 million in a fresh funding round led by Singapore-based investor Granite Asia, despite facing scrutiny over its user acquisition and monetisation strategies.
The funding round is structured as a primary capital infusion, with Granite Asia likely contributing $50 million and existing investors, including Fundamentum Partnership and IFC, providing the remaining $20 million. The funds are expected to be utilized for expanding Kuku FM’s regional content catalogue, enhancing creator partnerships, and improving platform engagement and retention. This investment is expected to value the company at around $500 million.
Audio platforms on questions?
But many companies have raised questions of using “dark patterns” in audio platforms. These practices may lead users into unintended purchases or subscriptions.
The Ministry of Consumer Affairs released guidelines in December 2023 targeting manipulative designs in digital platforms, aiming to promote transparency and fairness in user interactions.
Here’s how the issue has reportedly unfolded:
-Some apps offer low-cost trial subscriptions — for ₹1 or ₹2 for a limited number of days.
-Once the trial period ends, a significantly higher amount (between ₹149 and ₹699) is auto-debited from users’ accounts, often without a clear warning.
-Many users have reported that they were unaware they had agreed to recurring charges.
-A formal complaint has been submitted to the Reserve Bank of India (RBI), raising concerns about the practice.
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