New Delhi, May 12 -- MUMBAI: Indian micro-drama startups are attracting a new wave of venture capital (VC), as short-form episodic entertainment gains traction, powered by rapid user growth, improving monetization and rising investor interest in mobile-first video formats.

backed Flick TV, Elevation Capital-backed Rigi and Peak XV-backed Dashverse Reels are among a new cohort of micro-drama startups exploring $25-50 million fundraises, according to five people familiar with the matter. The interest reflects a fast-scaling category built on cliffhanger-led episodic content, where artificial intelligence (AI)-enabled production and microtransaction-based monetization are beginning to reshape early unit economics.

India's micro-drama marke...