SUMMARY
Pocket FM has raised its Series D funding round from Lightspeed and Stepstone Group.
The startup plans to use the fresh funds to fortify its presence in the US as well as to expand to Europe and LATAM markets
With the latest fundraise, the company’s valuation has jumped about 2X to $750 Mn, Inc42 has learnt
Audio entertainment platform Pocket FM has raised $103 Mn (INR 857 Cr) as a part of its Series D funding round led by Lightspeed, with participation from Stepstone Group.
The startup plans to use the fresh funds to fortify its presence in the US as well as to expand to Europe and LATAM markets, apart from strengthening its content library and creating a strong IP playbook for writers.
With the latest fundraise, the company’s valuation has jumped about 2X to $750 Mn, Inc42 has learnt.
Last week it was reported that Pocket FM bagged a funding of $100 Mn and the startup was in talks with sovereign wealth fund Abu Dhabi Investment Authority (ADIA) to raise a new “large” round of funding.
Speaking on the latest funding, Rohan Nayak, cofounder and CEO of Pocket FM, said, “Our robust content library of audio series and a strong consumption behaviour on the platform is shaping the future of entertainment.”
“Our focus remains on tapping into unique and exclusive stories to solidify our leadership in this emerging category and create a strong IP playbook. This latest funding validates our vision and the possibilities we bring to disrupt the industry,” he added.
With this, Pocket FM has raised $196.5 Mn in total funding till date.
Founded in 2018 by Nayak, Nishanth KS and Prateek Dixit, Pocket FM is an audiobook platform offering content across multiple languages and genres such as romance, self-help, and motivation.
It claims to have over 1 Lakh hours of content, including more than 2,000 exclusive audio series and 4 Lakh episodes across genres and languages in its platform. The startup said that it has surpassed $150 Mn ARR, and is growing at 57% QoQ. In the US market, its revenue has surpassed $100 Mn ARR.
“What sets Pocket FM apart is its vision to set up a sustainable and profitable business, backed by its unique pricing strategy. It emerges as a great reference for the entertainment landscape, with its capability to demonstrate strong unit economics,” said Harsha Kumar, partner at Lightspeed.
It is pertinent to note that Pocket FM today has put up an AI-led strategy for automation, content curation, production, and distribution. The company is also working on leveraging GenAI to scale its entertainment content offerings and build AI-powered personalised recommendations to enhance the overall user experience.
A few days back, the startup rolled out its online novel reading platform Pocket Novel to expand its offerings to other entertainment segments and formats.
In FY23, Pocket FM’s India arm posted a 56% year-on-year (YoY) narrowed loss of INR 75.7 Cr and a 663% YoY surge in operating revenue to INR 129.7 Cr.
