Audio entertainment platform Pocket FM
said its global revenue soared 496% to INR 1,051.97 Cr in the financial year 2023-24 (FY24) from INR 176.36 Cr in the previous fiscal year.
In a statement, the company also said that it managed to trim its global loss by 21% to INR 165 Cr from INR 209 Cr in FY23.
A significant portion of Pocket FM’s revenue stems from its microtransaction-led subscription model, which generated a revenue of INR 934.73 Cr, up 484% from INR 160.05 Cr in FY23, the statement said.
Revenue from advertisements surged over 600% to INR 89.34 Cr from INR 12.5 Cr in the previous fiscal year.
According to its MCA filing, Pocket FM’s operating revenue from the Indian entity almost doubled to INR 260 Cr in FY24 from INR 129.7 Cr in the previous fiscal year.
Its India arm’s net loss dropped 77.1% to INR 15.7 Cr during the year under review from INR 68.7 Cr in FY23.
Founded in 2018 by Rohan Nayak, Nishanth KS and Prateek Dixit, Pocket FM is an audio streaming (series) platform that offers diverse content across multiple languages and genres, including romance (drama, thriller, fantasy and more), science fiction and action thriller among others.
The company credits its growth to its freemium model, which allows users to access a limited portion of audio content for free while monetising binge-listening behaviour through coin-based microtransactions.
The platform allows users to unlock additional episodes by purchasing coin packs starting as low as INR 49. “This low entry-barrier model has resonated not just with Indian users but also globally, particularly in markets such as the US and Europe,” Anurag Sharma, chief financial officer of Pocket FM, told Inc42.
According to Sharma, 70% of Pocket FM’s revenue comes from the US, followed by 15% from India, and the remaining from other markets.
The platform has been expanding internationally and is now focusing on deeper penetration into the US and entry into European markets.
Recently, the company also made headlines for issuing pink slips to its employees. In July this year, it laid off around 200 US-based writers after partnering with US-based GenAI platform ElevenLabs.
Later in October, Pocket FM reportedly laid off 50 employees
However, Sharma told Inc42 that “the move was not layoffs in the conventional sense but rather the natural conclusion of project-based contracts”.
“As a consumer tech and entertainment production company, we operate similarly to traditional production houses. We often start multiple projects, hiring freelancers or consultants on a short-term basis. Some of these projects might not proceed beyond the review stage, and in such cases, we don’t extend contracts,” he added.
According to him, the company’s full time headcount has remained steady and it is hiring senior leaders as it expands into new markets like the European Union.
Earlier this year, Pocket FM bagged $103 Mn as a part of its Series D funding round led by Lightspeed to bolster its presence in the US and expansion into European and LATAM markets.
