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Kuku FM Faces Questions Over Unfair Practices, Yet Close to Raise Funding

By Lokmat English Desk | Updated: June 18, 2025 16:01 IST

Some popular apps in India are facing criticism over payment practices that may not be fully transparent to users. ...

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Some popular apps in India are facing criticism over payment practices that may not be fully transparent to users. One such app under the spotlight is Kuku FM, an audio content platform offering audiobooks and podcasts. Meanwhile, reports suggest Kuku FM is close to raising around $70 million (₹600 crore) from Singapore-based investor Granite Asia.

At the center of the concern are so-called “dark patterns” — design choices in websites or apps that can potentially mislead users into unintended actions, such as subscribing to a paid plan or sharing personal data.

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.

 

According to some reports, these revenue practices have boosted earnings for platforms like Kuku FM, improving their financial profile and potentially making them more attractive to investors. The timing of the reported ₹600 crore funding round has therefore attracted public attention, as it coincides with ongoing scrutiny over such business practices.

Other apps, including Stage and Seekho, have also come under observation for similar issues. Critics argue these platforms may be leveraging gaps in digital payment systems to enable charges without users’ informed consent.

The Ministry of Consumer Affairs and Union Minister Pralhad Joshi have acknowledged the growing concern. The government has released official guidelines to discourage the use of dark patterns, urging all companies to comply and encouraging e-commerce platforms to conduct regular internal audits.

There has also been a noticeable rise in user complaints, reflecting the scale of the issue. While platforms like Kuku FM continue to expand and raise new funding, regulators are stepping in to ensure consumer rights are safeguarded and digital platforms operate with greater accountability.

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