Audio series platform Pocket FM recorded a revenue of ₹1,768 crore for FY25, marking a 68% increase compared to the previous year, according to cofounder and CEO Rohan Nayak. This growth was fueled by an expanding content library and strong performance in major markets like the US and India.
Rohan Nayak stated that the Lightspeed India-backed company currently has an annual recurring revenue (ARR) of approximately ₹2,000 crore.
“The growth levers have primarily been expanding the content catalog. Since audio series is a new category, it’s not like you have a large catalog to start with. You have to figure out on your own how to get high-quality content in different sub-genres,” Nayak said.
Originally focused on romance and drama, the Bengaluru-based Pocket FM has significantly broadened its content library to include genres like fantasy, science fiction, and thriller. After establishing itself in India and expanding into the US, the platform has now entered the European market, particularly in Germany and the UK, where it has already crossed ₹100 crore in annual recurring revenue (ARR).
Looking ahead, the company aims to introduce more language options and strengthen its presence in Europe, while also planning to expand into various Latin American countries.
Pocket FM, now rebranded as Pocket Entertainment, has witnessed over 100 billion minutes of streaming, with 5 million microtransactions taking place each month. Currently, 85% of its revenue is driven by user payments through microtransactions, while the remaining 15% comes from advertisements.
The platform competes with major players like Spotify, as well as emerging content platforms such as Kuku FM, backed by Krafton, and Pratilipi, which recently secured a $20 million funding round led by Jungle Ventures.
With the launch of Pocket Novels and Pocket Toons, Pocket Entertainment expects these new verticals to significantly contribute to its growth in the current fiscal year.
According to Rohan Nayak, Pocket Entertainment’s U.S. operations are already profitable, and its India business is expected to reach breakeven by next month.
“At a Pocket group level, of course, we are not profitable because Europe is a new market and we’re also investing in artificial intelligence (AI) capabilities. But the bottom line is that we’re not burning that much,” he said, without giving loss figures. The company had posted a loss of Rs 165 crore in FY24.
Pocket FM has invested significantly in AI technology, generating more than 50,000 AI-produced shows over the past year as part of its content expansion efforts.
“AI is helping us not just unlock high-quality content, but also driving down costs at the same time,” said Nayak. “In fact, our content costs have already gone down by 2-3x because of AI. The AI shows have already generated over Rs 50 crore in revenue and are growing at a monthly rate of 30-40%.”
It is reportedly in talks to raise fresh capital. “We’re always in conversations with investors, and there’s a lot of significant interest in Pocket, at the moment. But it depends. It’s not like we’re actively raising at the moment, but we’re in conversations,” he said.
Founded in 2018, Pocket FM has raised approximately $196 million to date from prominent investors such as Lightspeed, Tencent, and Goodwater Capital.
Despite its growth, the company underwent multiple rounds of layoffs last year, with the most recent occurring in January, when about 75 employees were let go as part of a cost-reduction strategy.
“Pocket, as a business, does employ a lot of contractors for shows—for writing content. And whenever our show strategy changes—for instance, if you’re shutting down some shows or decide to change your content pipeline—you tend to terminate contracts, which gets perceived as layoffs,” Nayak said.
