The $8.3 million first ESOP buyback has been completed, according to audio series platform Pocket FM. The stock buyback follows the Bengaluru-based company’s announcement of $103 million in Series D funding.
According to a press release from the company, this process involved both current and former employees who had equity in the business.
After its most recent fundraising, the company was valued at $750 million and has been expanding quickly. It is increasing at a rate of 57% QoQ and has crossed $150 million (Rs 1,250 crore) in annual revenue, according to PocketFM. It claimed that its average revenue run rate (ARR) in the United States for the most recent calendar year exceeded $100 million, processing more than 20 million transactions.
The repurchase has occurred while Pocket FM is purportedly in final discussions to launch a new round that would propel it into the unicorn club.
The fourth company in the growth stage to announce a stock buyback in 2024 is Pocket FM. Recently, Meesho, an online retailer, announced the largest ESOP buyback program, totaling $25 million for 1,700 current and former employees. Classplus, an edtech company, and MyGate, an app for community management, both announced earlier this year their plans to buy back employee stock.
The media reported that the total EOSP liquidity, payout, and buyback amount in 2023 was close to $802 million. The amount recorded for buybacks in 2021 and 2022 was $440 and $200 million, respectively.
With over 400,000 episodes spanning multiple languages and genres, Pocket FM boasts 2,000 exclusive audio series. The true financial picture of the company may become clear when it releases its complete FY24 results, but in the fiscal year that ended in March 2023, Pocket FM’s revenue increased by 8X to Rs 148.7 crore. Additionally, the company enhanced unit economics and cut its losses in the most recent fiscal year by roughly three-fourths.
