Pocket FM aims for Unicorn status with new ADIA investment

OVERVIEW

Pocket FM nears unicorn status after ADIA's Series D funding round.
Funds raised $103 million, projected to value at $1.2 billion to fuel geographical expansion, content repository, and intellectual property framework.
ARR surpasses $150 million and 57% Q1 growth rate.
Indian arm reported a narrowed loss in 2023, but operating revenue surged to INR 129.7 crore.

Pocket FM, the audio entertainment platform, is on the brink of achieving unicorn status thanks to a recent cash infusion from the Abu Dhabi Investment Authority (ADIA). This injection of funds comes on the heels of its Series D funding round, which successfully raised $103 million. The Series D round is projected to value Pocket FM at approximately $1.2 billion, propelling it into the coveted unicorn league.

Strategic Expansion Initiatives

The move by Pocket FM aligns with its strategic objectives to solidify its foothold in the US market while also venturing into European and Latin American territories. The newly acquired funds will not only fuel geographical expansion but also bolster the platform's content repository and facilitate the development of a robust intellectual property (IP) framework for content creators.

Impressive Growth Trajectory and Revenue Metrics

Established in 2018 by Rohan Nayak, Nishanth KS, and Prateek Dixit, Pocket FM has demonstrated remarkable growth, boasting a library of over 100,000 hours of content, featuring 2,000 exclusive audio series and 400,000 episodes spanning various genres and languages. The platform has achieved an annual recurring revenue (ARR) surpassing $150 million, with a staggering 57% quarter-on-quarter growth rate. Notably, Pocket FM's revenue in the US alone has surpassed $100 million ARR.

Drawing Investor Attention

Pocket FM's sustainable growth, coupled with strong unit economics and impressive gross margins, has garnered significant attention from investors worldwide. Currently, the platform is engaged in discussions with various investors to fuel its ambitious expansion plans.

Elevating Entertainment Standards with Hit Content

The success of Pocket FM can be attributed to its diverse portfolio of blockbuster content, including popular series such as "Insta Millionaire," "Saving Nora," and "The Return," each generating revenues exceeding INR 100 crore. Notably, approximately 15 audio series have crossed the $1 million revenue threshold, showcasing Pocket FM's prowess in reshaping the entertainment landscape.

Financial Performance and Future Prospects

In the fiscal year 2023, Pocket FM's Indian arm reported a narrowed loss of INR 75.7 crore, marking a remarkable 56% year-on-year decrease. Operating revenue witnessed an astounding 663% year-on-year surge, reaching INR 129.7 crore, underscoring the platform's robust performance and promising growth trajectory.

Pocket FM's pursuit of unicorn status reflects its ambition to emerge as a global leader in the audio entertainment realm, driven by its innovative content offerings and well-defined growth strategy.

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