IPO-bound Ullu, an over-the-top (OTT) platform that offers movies and series targeted at adults, has found itself under the scrutiny of the National Commission for Protection of Child Rights (NCPCR) over providing explicit content on its app.
Sources said on Monday that the NCPCR, in a letter, has urged the Ministry of Electronics and Information Technology to take action against the Ullu app for making sexual content easily accessible to minors and hosting content depicting sexual acts involving school-going children.
The NCPCR also urged the IT ministry to take action against Google and Apple, as well as impose stricter Know Your Customer (KYC) norms for users who access Ullu and similar apps on app stores.
This comes at a time when Ullu has filed a draft red herring prospectus (DRHP) for an IPO to raise around Rs 135-150 crore.
The Ullu platform has proposed to raise funds via fresh issue of up to 62,62,800 equity shares.
Founders Vibhu Agarwal and Megha Agarwal own 95 per cent shares in the company, according to the DRHP. Zenith Multi Trading DMCC has a 5 per cent stake in Ullu.
Ullu generated Rs 58.33 crore in revenue from operations with a profit of Rs 12.28 crore for the period of April-September in the current fiscal year (FY24). As of September 2023, the company has 20,92,975 subscribers.
