Chai Bisket raises $5 million to launch mobile-only microdrama OTT platform

Chai Bisket, a regional digital content startup, has raised $5 million in seed funding from Info Edge Ventures and General Catalyst as it prepares to launch Chai Shots, a mobile-first over-the-top (OTT) platform dedicated to short-form fictional storytelling. 

The new app aims to capitalise on the rising popularity of “microdramas”—two-minute episodic narratives tailored for Gen Z audiences and users in India’s smaller cities.

Founded in 2015 by Sharath Chandra and Anurag Reddy, Chai Bisket is best known for its Telugu-language digital media presence, having amassed over two billion views across its YouTube channels and content verticals. The startup claims its network attracts more than 50 million monthly video views, supported by a team of over 100.

Chai Shots, which is slated for early access rollout in Telugu, will eventually expand to include original programming in Tamil, Malayalam, and Kannada. The platform’s technology strategy is being spearheaded by Krishna Mohan Varma, who joins as a cofounder alongside Chandra and Reddy.

The startup's seed round also includes participation from a prominent group of angel investors across tech and entertainment sectors. Backers include actor and entrepreneur Rana Daggubati, Swiggy cofounders Sri Harsha Majety and Nandan Reddy, RedBus founder Phanindra Sama, Darwinbox cofounder Rohit Chennamaneni, PhysicsWallah founders Alakh Pandey and Prateek Maheshwari, Virgio founder Amar Nagaram, and Rapido cofounders Aravind Sanka, Rishikesh SR, and Pavan Guntupalli.

In an industry where attention spans are shrinking and content consumption increasingly happens on smartphones, Chai Shots is positioning itself at the confluence of fiction and short-video entertainment. The app promises over 100 original shows within its first six months, with narratives rooted in emotional storytelling and regional identity.

Microdramas—serialised fictional episodes often ending in cliffhangers—have gained traction globally, with Chinese platforms such as iQIYI, DramaBox, ReelShort, and Kuaishou setting the pace. In India, startups like Flick TV, Eloelo, Kuku FM (through Kuku TV), ReelSaga, and ShareChat (via QuickTV), as well as legacy media companies like Amazon and Zee Entertainment, are experimenting with the format.

“We’re extremely bullish on microdramas as a format, especially in regional languages like Telugu, Tamil, Malayalam, and Kannada, where there’s both strong demand and a high willingness to pay for original content,” said Kitty Agarwal, partner at Info Edge Ventures.