The booming audio series platform, Pocket FM, is displaying an impressive trajectory, with its user numbers steadily climbing. According to recent data, 2023 has been particularly noteworthy for the platform as its Android and iOS apps accumulated over 33 million downloads, 13 million of which came in just the past quarter. This data, provided by the analytics firm Sensor Tower, has stirred investor interest, hinting at an imminent funding round for the company.
Informed sources, who chose to remain unnamed, confirmed that Pocket FM is on the cusp of finalizing negotiations to clinch a substantial funding ranging between $80-100 million. “The funding is expected to be jointly spearheaded by the Lightspeed growth fund, alongside other prominent investors. This deal, which has been in discussion for several months, has finally seen its terms settled,” shared one insider.
Pocket FM, in its journey, has been previously backed by stalwarts like Lightspeed, Tanglin Venture, and Times Internet. The forthcoming investment by Lightspeed is speculated to emanate from its global growth fund, a pool which had earlier championed the cause of B2B e-commerce platform, Udaan.
The forthcoming financing milestone will be significant for Bengaluru’s Pocket FM, marking its first equity funding for 2023. A flashback to May reveals the firm’s acquisition of a $16 million debt from Silicon Valley Bank, pushing their overall equity capital to a commendable $94 million.
Loyal stakeholders such as Tanglin, Goodwater, and Naver are not staying behind in this round, with plans to chip in with substantial financial injections. Another source mentioned, “The funds amassed will not just bolster Pocket FM’s Indian operations but will be a launchpad for its international endeavors.”
While the buzzing news awaits official commentary from both Pocket FM and Lightspeed, we remain on standby to integrate any subsequent responses into this coverage.
Diversifying its portfolio, Pocket FM is a hub for an eclectic mix of long-form audio content that spans shows, narratives, and novels. Post its success in the US, the next target on its radar is a broader global expansion.
However, the nature of such negotiations dictates a certain fluidity, implying the final agreement might see some tweaks.
Shifting the lens to financial health, November 2022 had Pocket FM declaring an annual revenue run rate of Rs 175 crore (or roughly $25 million). Yet, the fiscal curtains for FY23 are yet to be lifted. Past records from startup analytics platform, TheKredible, shed light on a revenue of Rs 17 crore against a loss of Rs 171.6 crore for FY22. In this dynamic arena, Pocket FM locks horns with contenders like KuKu FM, Awaz, and Headfone.
On a side note, KuKu FM recently announced a successful funding round, amassing $25 million in its Series C, championed by The Fundamentum Partnership and International Finance Corporation (IFC), paralleled by a revenue rise to Rs 41.2 crore for FY23.
