Pocket FM, an audio series platform, received $16 million in funding from Silicon Valley Bank, a subsidiary of First Citizens Bank with headquarters in the US. With this, the Gurugram-based business officially raised money for the first time in 2023.
According to a press release from the company, the money will be used to expand its library of audio series, attract more global creative talent, and increase revenue.
Based on the success of its micropayment-led pricing strategy, the company asserted that its revenue increased by 12X last year and would surpass $25 million ARR in October 2022.
A platform for long-form audio content, such as audio shows, stories, novels, and podcasts, is called Pocket FM.
The startup is now looking to expand its global presence to more countries after a successful launch in the US.
With this debt round excluded, investors such as Tencent and Times Group have contributed nearly $94 million to Pocket FM since its launch. In order to expand into new languages and create the biggest community of audio creators, it raised $65 million in March 2022.
In November 2022, Pocket FM claimed to have reached an annualized revenue run rate of Rs 175 crore, or $25 million. The fiscal year that ended in March 2022 didn’t even reach Rs 20 crore in revenue. It increased its operating scale by 11.4X, from Rs 1.49 crore in FY21 to Rs 17 crore in FY22. In FY22, the company’s losses increased 10X to Rs 171.6 crore from Rs 17.14 crore in FY21. The business contends with a number of rivals, including KuKu FM, Awaz, and Headfone.
