India’s EloElo Secures $80M Investment from NBCUniversal to Capitalize on the Booming Microdrama Scene
Over 118 million users engage with microdramas each month in India, marking a significant rise in this serialized content format. EloElo’s Story TV app has emerged as a leading platform, boasting more than 33 million active users, according to market experts.
Capitalizing on this growth, EloElo has successfully raised $80 million in a Series C funding round led by Hornbill Capital and NBCUniversal. This funding round elevates the total investment to $130 million, yielding a company valuation of $500 million.
As users increasingly gravitate towards platforms offering vertical video content, the popularity of serialized narratives has expanded globally—including in the U.S., China, and India. High-profile celebrities such as Issa Rae, James Franco, and Kim Kardashian have also begun investing in and participating in these formats.
With India’s internet audience surpassing one billion, the country holds considerable market potential, and experts predict the microdrama industry could exceed $3 to $4 billion in annual revenue by 2030. Last year, popular apps like Story TV, Kuku TV, and Quick TV topped the download charts in India.
Founded in 2020 by Saurabh Pandey, a former executive at Flipkart, the Story TV platform has rapidly gained traction, now offering over 5,000 titles in six languages. Pandey revealed that users spend an average of 95 minutes per day on the app, broken into multiple sessions, due to the appealing short format of the content.
“I genuinely believe that the next billion users will not be accustomed to traditional television. Instead, they will predominantly consume content on their phones. This entertainment needs to be crafted differently, as it will not revolve around fixed viewing times. The serialized storytelling format has yet to be fully addressed, even as short clips have gained traction,” Pandey shared regarding the appeal of microdramas.
He acknowledges that large-screen viewing will continue to have its place in social settings, but predicts that mobile consumption will dominate entertainment choices.
Microdrama platforms face competition from giants like YouTube, Instagram, and TikTok, where creators frequently share free content. Some of these platforms are also exploring ways to allow creators to share serialized stories. Pandey believes that by focusing on quality content, Story TV can attract users away from these free services. The company has strategic partnerships, including one with Balaji Telefilms, to enhance its content offerings.
EloElo provides various subscription plans—monthly, quarterly, and annual—to access exclusive content, alongside some ad-supported free content. However, it remains to be seen whether ad-supported models can generate substantial revenue compared to subscriptions.
Monetization poses significant challenges in India, as many users prefer free content, resulting in low conversion rates to paid subscriptions. According to a report by Redseer, over 40 million individuals have subscribed to microdramas at some point, yet only 15 to 17 million continue to pay monthly. Another survey by Ormax Media found that 72% of respondents had never paid for microdrama content.
AI and Future Initiatives
Microdrama platforms are eager to generate diverse content for varied audiences, leveraging AI to achieve this. Some platforms, like the Google-backed Kuku TV, aim to streamline content creation processes, while others, like Dashverse’s Shortfree, focus on utilizing AI for generating serialized video clips.
Presently, Story TV is in the former category with its Dolphin AI platform. Initially created as an internal video creation tool, the company now intends to offer it widely, incorporating features like editing templates and models for generating images, audio, and videos.
EloElo envisions users employing this tool for marketing and advertisement purposes. While other Indian platforms like Pocket and Kuku have developed AI tools for creators, they are yet to establish a comprehensive alternative to tools like CapCut or Instagram Edits specifically for creators in India.
Pandey emphasizes the importance of human creativity in storytelling, asserting that AI tools should function as collaborative partners rather than replacements.
“I view AI as a powerful engine—akin to a high-speed race car—while the creative director or showrunner acts as the skilled driver. AI is intended to complement their expertise, assisting in storytelling without overshadowing the human element,” he remarked.
In addition to microdrama, EloElo also operates a vertical video learning platform called Master, competing with services like Seekho and Kuku’s Guru, alongside an AI companion application named Voxy AI. The company reports over 40 million monthly users across its platforms, with the majority affiliated with Story TV.
EloElo currently employs 240 staff members and plans to expand its AI and machine learning research team. A significant portion of its funding will also be allocated for developing new original content.
Recent funding was secured from MIT Investment Co. and existing investors, including Play Ventures, Kalaari Capital, Waterbridge Ventures, and Griffin Gaming Partners.
