Founded in 1929, Prabhat Films studio was formed in Kolhapur, Maharashtra by Vishnupant Damle, K Dhaiber, Syed Fatehlal and V Shantaram. The four partners had parted ways from Maharasthra Film Company where they all had assisted Baburao Painter and went onto become senior members of the company. They were joined in by a local goldsmith S V Kulkarni as the financing partner. While many of the films were directed by the prolific director V Shantaram, the other partners also made films. K Dhaiber primarily being a cinematographer also directed films. Also, the duo team of V. Damle and S. Fatehlal were famous for the mythologicals they made over the years.

The company made 6 silent films Gopal Krishna (1929), Khooni Khanjar (1930), Rani Saheba (1930), Udaykal (1930), Chandrasena (1931) and Zulum (1931). All these films were quite a success at the boX office.