Pocket FM, the popular audio series platform, has seen a remarkable 6X increase in its operating scale for the fiscal year ending March 2024. The company also made significant strides in improving its financial health, reducing its losses by 21%.
The platform’s revenue from operations skyrocketed to Rs 1,051.97 crore in FY24, a substantial rise from Rs 176.36 crore in the previous fiscal year, according to the company’s official statement.
A major contributor to this growth was its subscription-based income, which accounted for 88.8% of total operating revenue. Subscription revenue surged 5.8X, reaching Rs 934.73 crore in FY24, up from Rs 160 crore in FY23. The spike in subscription income is largely attributed to the growth in microtransactions on the platform. Advertising revenue also experienced a massive boost, growing 7X to Rs 89.34 crore from Rs 12.5 crore in FY23.
Pocket FM currently offers over 75,000 audio series, with contributions from a vast network of 250,000+ writers globally. The platform has processed over 45 million transactions and has seen more than 40,000 AI-generated audio series, which have collectively generated over Rs 25 crore in revenue.
Anurag Sharma, CFO of Pocket FM, stated, “As we move closer to profitability, we continue to set new standards in innovation and operational efficiency within the entertainment sector. Our goal remains to provide scalable, immersive, and profitable content experiences.”
Additionally, the company made significant progress in improving its financial metrics. Pocket FM reduced its losses by 21%, bringing its loss down to Rs 165 crore in FY24 from Rs 208 crore in FY23. This resulted in an improved expense-to-revenue ratio, which dropped from 2.18 in FY23 to 1.16 in FY24.
Earlier in March 2024, Pocket FM successfully secured $103 million in its Series D funding round, led by Lightspeed and joined by Stepstone Group. With a total funding of $196.5 million, the company was valued at $750 million during its last equity round. Following this fundraise, Pocket FM also conducted its first-ever ESOP buyback, totaling $8.3 million.
In comparison, Pocket FM’s competitor, Kuku FM, reported a two-fold increase in its revenue, reaching Rs 88 crore in FY24. The company, backed by IFC and Fundamentum Partnership, also reduced its losses by 18%, bringing them down to Rs 96 crore.