Indian entertainment startup EloElo has raised $80 million in a Series C funding round led by Hornbill Capital and NBCUniversal to expand its microdrama platform Story TV and develop AI-powered content production tools. The investment, announced on November 4, 2026, values the company at approximately $500 million and brings its total funding to $130 million.
The round also included MIT Investment Co. and existing investors Play Ventures, Kalaari Capital, WaterBridge Ventures, and Griffin Gaming Partners. The Bengaluru-based company plans to use the funding to produce original content, strengthen its AI capabilities, and expand into international markets.
Story TV Reaches 33 Million Active Users
Founded in 2020 by former Flipkart executive Saurabh Pandey, EloElo operates Story TV, a mobile entertainment platform specializing in short, serialized dramas designed for vertical viewing. The platform offers over 5,000 titles across six languages, with users spending an average of 95 minutes daily on the app, according to the company.
Story TV has attracted over 33 million active users, while EloElo reports more than 40 million monthly users across its applications. The company also operates Master, a short-form learning platform, and Voxy AI, an AI companion application.
India’s microdrama market has expanded rapidly, with more than 118 million people watching serialized short-form content every month. Industry analysts expect the country’s microdrama market to generate between $3 billion and $4 billion in annual revenue by 2030.
Story TV competes with platforms including Kuku TV and Quick TV, alongside free video services such as YouTube and Instagram. EloElo has partnered with production companies, including Balaji Telefilms, to develop original programming for its audience.
EloElo Expands AI-Powered Video Production
EloElo is also investing in Dolphin AI, an internally developed platform designed to support video production through automated editing and generative AI tools. The software provides templates and AI models for generating images, audio, and video content.
The company plans to make Dolphin AI available to external creators, including businesses producing advertisements and marketing campaigns. Pandey said AI could accelerate production workflows but emphasized that human creative directors and showrunners remain essential to developing compelling stories.
EloElo currently employs approximately 240 people and plans to expand its AI and machine learning research teams. The company will also allocate a substantial portion of its new funding toward developing additional original series.
Subscription Revenue Remains a Challenge
Story TV generates revenue through monthly, quarterly, and annual subscriptions, alongside advertising-supported content. However, converting free viewers into paying subscribers remains a challenge across India’s microdrama industry.
According to Redseer, more than 40 million Indian consumers have paid for microdrama content at least once, but only 15 million to 17 million make payments monthly. A separate survey by Ormax Media found that approximately 72% of microdrama viewers had never paid for content.
EloElo plans to increase its investment in original productions while developing additional revenue opportunities through Dolphin AI. The company is also evaluating international expansion, including potential entry into the United States.
Featured image credits: Magnific.com
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