Six days before EloElo announced its $80 million funding round, Peak XV-backed Dashverse was reportedly shutting its micro-drama app and turning to AI video software. Pocket FM had already closed Pocket TV before trying again with Pocket Saga. Yet EloElo is raising money to take Story TV global. Same booming market, three very different bets.
And booming it is. Redseer estimates India's monthly micro-drama revenue jumped from ₹35 crore in April 2025 to ₹383 crore in June 2026. Indians were watching 800 million episodes a day. No wonder everyone, from Kuku and QuickTV to Amazon and JioHotstar, wants a piece.
But watching is easy. Paying is harder. A Meta-Ormax survey found only 28% of viewers had ever paid for micro-dramas, and 17% had active subscriptions. The median monthly price viewers were comfortable with was just ₹75. That's a difficult audience to chase with expensive digital ads.
EloElo's FY25 accounts show the problem. It earned ₹69.5 crore in operating revenue but spent ₹174 crore, including ₹59 crore on marketing. That's ₹2.51 spent to earn ₹1. Its latest funding doesn't tell us whether Story TV has fixed those economics.
Then there's Kuku, which complicates the argument that Indians won't pay. In FY26 it reported ₹1,484 crore in operating revenue and ₹183 crore in profit. But marketing swallowed ₹1,105 crore, nearly 74% of revenue. And ₹98 crore of that reported profit came from a deferred tax credit. There is a business here, just not an easy one.
Consider the ₹1-2 introductory trials that can renew at ₹499–699 a quarter. Complaints about unexpected deductions raise an awkward question: how many subscribers love the stories, and how many simply haven't cancelled? Regulators may eventually force a clearer answer.
The problem isn't uniquely Indian. ReelShort reportedly earned $785 million globally in 2025 and still lost about $12 million. Meanwhile, micro-drama apps pay Instagram and other platforms to find viewers. ShareChat, JioHotstar and Amazon already have audiences. That's a major advantage.
AI may cut production costs, as EloElo's growing use of it suggests. But cheaper shows also mean more rivals chasing the same viewers. The savings could disappear into marketing.
Our bet is that micro-dramas will thrive, but many standalone apps won't. The winners may be existing distributors, specialist studios and AI suppliers. The question for EloElo isn't how many people watch Story TV. It's how many keep paying without being repeatedly bought back through advertising.
Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.
“Taiyyari Jeet Ki”: NPCI Expands Beyond Payments With AI, Blockchain-Focused Subsidiary
NPCI has set up NPCI Tech Solutions Ltd (NTSL), appointing Vishal Kanvaty as its MD & CEO.
The subsidiary will expand beyond payments into AI, blockchain and digital infrastructure.
The Chai Take:
Giving emerging technology a separate operating vehicle can help NPCI move faster without diluting its core payments mandate.
Read more here
“Kar Har Maidan Fateh”: Razorpay Gets SEBI Nod For ₹6,000 Cr IPO
Razorpay has secured SEBI approval for its proposed ₹5,000-6,000 Cr IPO, targeting a listing in Q1 2027.
The fintech major is eyeing a $5 Bn valuation, below its $7.5 Bn mark in 2021.
The Chai Take:
Public investors will scrutinise the quality of its non-payments revenue and profitability far more closely than private-market investors did.
Read more here
“Waqt Rehte Sudhar Jao”: DSCI Floats Framework To Determine Liability
DSCI has proposed a framework to assign liability when autonomous AI agents cause harm.
It aims to clarify accountability across the AI value chain as agents gain greater decision-making powers.
The Chai Take:
The useful shift here is from blaming the model to tracing who controlled each consequential decision.
Read more here
“Hum Saath Saath Hai”: Pine Labs Partners With Stripe To Unify Online, In-Store Payments In Singapore
Pine Labs has teamed up with Stripe to offer Singapore retailers a unified payment solution across online and physical stores.
It combines Stripe's online payments with Pine Labs terminals and merchant tools for physical stores.
The Chai Take:
Execution will hinge on reconciliation quality and merchant support, because unified commerce only works when the back office is genuinely unified.
Read more here
“Tu Haan Kar Ya Na Kar”: Jio In Talks With US-Based Comcast, Charter To License Broadband Technology
Jio Platforms is reportedly in talks with Comcast and Charter Communications to license its UBR broadband technology for potential equity stakes.
The move supports Jio’s global expansion plans, with 10-15 overseas partnerships in sight.
Read more here
“Kuch Daring Karna Hai”: Canva Job Cuts Affect Over 1,200 Employees
Canva is restructuring its workforce, affecting 1,271 employees or 22% of its staff, as it pivots towards the AI era.
The changes include layoffs, role shifts and relocation requests.
Read more here
“Mujhe Nyay Chahiye”: upGrad Files Insolvency Petition Against Bira91
upGrad has filed an insolvency petition against Bira 91 parent B9 Beverages over alleged unpaid dues of ₹1.02 Cr.
The filing does not automatically start insolvency proceedings; the NCLT must first admit it.
The Chai Take:
Multiple operational-creditor actions turn Bira 91's cash crunch into a control and solvency problem. Each new petition reduces the company's room to negotiate on its own terms.
Read more here
“Tum Par Dil Aagya”: Nykaa Buys 82% Stake In Simply Nam
Nykaa has announced the acquisition of an 82% majority stake in Simply Nam, the cosmetics brand founded by makeup artist Namrata Soni with venture studio Bozzil.
The deal expands Nykaa's premium makeup portfolio as its beauty business continues to drive growth.
The Chai Take:
Nykaa is using its distribution advantage to acquire differentiated brands rather than relying only on marketplace commissions.
Read more here
“Ye Naya Bharat Hai”: Soket Labs & ZenteiQ Launch Indigenous AI Models
Soket Labs and ZenteiQ have launched indigenous AI models under the IndiaAI Mission.
Soket’s EKA-1 supports 22 Indian languages and English, with capabilities spanning reasoning, coding and mathematics.
The Chai Take:
India's model race will be won on deployment economics and domain performance, not parameter counts alone.
Read more here
“Kuch Naya Ho Jaaye”: Sarvam Launches Prism For Fast Enterprise Decisions
Sarvam AI has launched Prism, an open-weight decision model built on Sarvam 105B.
It is designed for repeated enterprise decisions such as support routing, security-alert assessment and identifying when an AI agent needs human review.
The Chai Take:
Prism's opportunity depends on calibrated accuracy under Indian-language and domain-specific workloads, where a wrong confident answer can be expensive.
Read more here
“Purana Saal Naya Maal”: Decentro Launches Static And Dynamic QR Soundboxes
Decentro has launched Static and Dynamic QR Soundboxes to give merchants instant spoken payment confirmations.
The devices support multiple connectivity options and alerts in English, Hindi and regional languages.
Read more here
Peppermint Robotics has raised ₹100 Cr in a Pre-Series B round to expand its industrial robotics business.
Read more here
EloElo Group has raised $80 Mn from NBCUniversal and other investors to take its microdrama business global.
Read more here
Mumbai-based OneStack has raised ₹12.5 Cr from Shepherd’s Hill and existing investors to strengthen its fintech infrastructure business.
Read more here
Ottonomy has raised ₹40.6 Cr ($4.2 Mn) in a funding round with participation from Japan-based Enrission India Capital.
Read more here
