Ullu under NCPCR scrutiny for offering explicit content ahead of IPO

New Delhi, March 4 (IANS) IPO-bound Ullu, an over-the-top (OTT) platform offering adult-targeted content, is facing scrutiny from the National Commission for Protection of Child Rights (NCPCR) for providing explicit content accessible to minors. The NCPCR has urged action against Ullu, Google, and Apple for hosting inappropriate material involving school-going children.

The NCPCR has written to the Ministry of Electronics and Information Technology calling for stricter measures against Ullu and similar apps on app stores. This development coincides with Ullu’s filing of a draft red herring prospectus (DRHP) for an IPO to raise Rs 135-150 crore. The platform plans to raise funds through the issuance of equity shares.

Founders Vibhu Agarwal and Megha Agarwal hold 95% of Ullu’s shares, as per the DRHP, while Zenith Multi Trading DMCC owns a 5% stake. Ullu reported revenue of Rs 58.33 crore and a profit of Rs 12.28 crore for the period of April-September in FY24. The platform had 20,92,975 subscribers as of September 2023.

The NCPCR’s actions against Ullu highlight the growing concerns over inappropriate content accessible to minors on digital platforms. With Ullu’s IPO plans in the spotlight, the platform faces increased scrutiny over its content policies and measures to protect young viewers from explicit material. The regulatory challenges ahead for Ullu and its founders remain uncertain amidst the controversy.