Ullu Ventures Into Web3 Space With UlluCoin

Marking its entry into Web3 space, OTT streaming platform Ullu has launched a utility token designed to integrate blockchain-powered functionality across its digital content ecosystem.

The company said in a statement that the token, UlluCoin, will support user engagement, enable in-app redemptions, unlock premium content and offer fan rewards.

Currently, Ullu has over 42 Mn active users and more than 109 Mn app downloads since its launch in 2018. The company said UlluCoin is being issued by a newly created entity and will have a maximum supply of 100 Bn tokens.

“UlluCoin is more than just a token; it’s a full stack utility ecosystem built on one of the most active OTT platforms in the region,” said Avinash Duggar, chief executive at Ullu.

Cypher Capital has backed the launch through a strategic early stage investment. The VC firm, which focuses on blockchain and emerging technologies, has previously invested in several Web3 projects.

Founded in 2019 by Vibhu Agarwal, Ullu offers diverse range of web series, short films and shows primarily in Hindi and a few regional languages like Tamil, Telugu, and Bhojpuri.

The platform claims to offer a wide range of genres, primarily romance, drama, thriller, and comedy. While Ullu’s content is consumed mainly in India, it claims to have some business in Australia, too.

It is pertinent to mention that Ullu’s IPO plans have been delayed due to regulatory concerns surrounding the platform’s adult content and the subsequent investigation by the National Commission for Protection of Child Rights (NCPCR). The company, which filed its draft IPO papers in February 2024, is yet to offer any clarity on its public listing plans.

The NCPCR raised concerns about the accessibility of “extremely obscene and objectionable” content to children.

In May, the Telecom Regulatory Authority of India (TRAI) chairman Anil Kumar Lahoti reportedly underscored the need for further regulating online content.

Raising concerns over how traditional media and cable was governed by strict legislation while digital media merely had self-regulation, he also reportedly pitched for a common regulation to regulate linear and digital content delivery mechanisms.

Not just this, last month, the union government also informed the Supreme Court that it was working on new norms to curb obscenity on streaming platforms and social media sites. At the time, the SC had called the issue of obscene and objectionable content available on OTT streaming platforms a serious issue.

To clamp down on such sites, the Centre, last year, also blocked access to 18 OTT streaming platforms for publishing “obscene, vulgar, and pornographic content”.

On the financial front, Ullu Digital’s profit after tax (PAT) declined 16% to INR 12.68 Cr in FY24 from INR 15.14 Cr in the previous fiscal. The streaming giant’s revenue from operations rose 7% to INR 99.67 Cr during the year under review from INR 93.15 Cr in FY23.

Despite growing adoption of virtual digital assets (VDAs) in India, the government remains cautious and maintains a vigilant regulatory stance.

Earlier in January, Reliance Industries Limited’s (RIL’s) digital arm Jio Platforms rolled out a reward-based crypto token ‘JioCoin’ for JioSphere web browser users, where it is built atop Ethereum Layer 2 and is currently listed on crypto platform Polygon Labs.