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Kuku FM CEO Accuses Pocket FM of Smear Campaign Amid Funding Talks; Pocket FM Denies Allegations

• ByStartupStory     |    June 20, 2025

In a dramatic turn of events in India’s competitive audio OTT space, Lal Chand Bisu, cofounder and CEO of Kuku FM, has alleged that rival Pocket FM is behind a targeted smear campaign aimed at discrediting the platform just as it enters fundraising discussions.

Taking to social platform X (formerly Twitter), Bisu claimed that Pocket FM had engaged a PR agency to manipulate online sentiment and trend a negative campaign against Kuku FM. He posted a screenshot from an undisclosed source suggesting that the hashtag “KUKUFM FRAUDULENT METHODS”  which was trending fourth on X with over 2,400 posts  was being fueled by Pocket FM’s hired agency.

“This is the standard of my competitor founders. Playing completely dirty games! They still think they can beat the competition through fake PR and paid Twitter trends,” Bisu wrote.

While most of the trending posts appeared unrelated, some users complained about Kuku FM’s refund process, citing issues such as partial refunds and lack of reference IDs. A source at Kuku FM told Inc42 that the company believes the trend was deliberately triggered to tarnish its image as it begins discussions to raise a fresh $70 million funding round, reportedly led by Granite Asia.

In response to the allegations, Pocket FM issued a formal statement denying any wrongdoing. “These are baseless allegations. We are disappointed and hurt to see unfounded personal accusations that misrepresent us and cross the line. We prefer investing our energy in innovation rather than being distracted by unproductive noise,” said a company spokesperson.

A History of Rivalry

This isn’t the first time the two startups have clashed. In 2022, Pocket FM filed a copyright infringement case against Kuku FM, alleging unauthorized audio summaries of books for which Pocket FM held exclusive rights. The dispute was settled later that year, with Kuku FM agreeing to remove the contested content.

Earlier this year, Pocket FM raised $103 million in a Series D round led by Lightspeed, pushing its valuation to $750 million. However, the company has faced legal challenges of its own. As per Inc42, multiple lawsuits were filed in the US by contractors alleging misclassification, poor working conditions, and non-compliance with wage laws. In May, Pocket FM reportedly planned to lay off 75 employees as part of a cost optimization move.

Kuku FM also faced headwinds, letting go of around 300 employees in a restructuring exercise in November 2024.

The Growing Audio OTT Market

The Indian audio OTT market is on a fast growth trajectory, projected to reach $3.2 billion by 2030, according to Statista. Both Kuku FM and Pocket FM have diversified their offerings to tap into this expansion, particularly in the booming microdrama segment.

Kuku FM recently launched Kuku TV, gaining traction with vertical short-format video dramas. Pocket FM, too, is investing in the format via its dedicated YouTube channel Pocket FM Drama.

With the stakes rising, competition between the two platforms is intensifying and so are the controversies.

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