Pocket FM, an audio entertainment platform, announced on Wednesday that it has secured $103 million in Series D funding, marking one of the largest fundraising rounds of the year. This new capital infusion aims to bolster Pocket FM’s expansion efforts into the US market and facilitate its global expansion plans into Europe and LatAm markets throughout 2024.
With this latest round, Pocket FM’s total funding to date amounts to $196.5 million. Lightspeed led the funding round, with Stepstone Group also participating.
Founded in 2018, Pocket FM has been dubbed the ‘Netflix for Audio’, curating a vast collection of exclusive audio series. It boasts over 100,000 hours of content, including more than 2,000 exclusive audio series and over 400,000 episodes spanning various genres and languages.
Harsha Kumar, Partner at Lightspeed, emphasized Pocket FM’s unique pricing strategy and its commitment to establishing a sustainable and profitable business. Kumar highlighted the company’s ability to showcase robust unit economics, positioning Pocket FM as a transformative force in the entertainment landscape through its tech-driven approach.
Pocket FM revealed that it has surpassed $150 million in annual recurring revenue (ARR) and is experiencing a 57% quarter-on-quarter (QoQ) growth rate. In 2023 alone, the platform facilitated over 20 million transactions.
Leveraging an AI-led strategy for automation, content curation, production, and distribution, Pocket FM aims to utilize generative AI to scale its entertainment content offerings. Additionally, it seeks to develop AI-powered personalized recommendations to enhance the overall user experience.
Rohan Nayak, CEO and co-founder of Pocket FM, emphasized the company’s commitment to addressing the growing demand for audio fiction and its dedication to solidifying its leadership in this emerging category across key markets.
Pocket FM ventured into the US market in Q4 of 2022 and has already achieved over $100 million ARR in revenue. With approximately 10 million registered users in the US, the platform aims to capitalize on its robust content library and user engagement to shape the future of entertainment.
In addition to Pocket FM’s fundraising milestone, the fintech sector has seen significant activity, with Perfios recently securing $80 million in funding, propelling it to unicorn status. The trend continues with other startups like Ultrahuman, Lohum, The Ayurveda, Cureskin, and Hunch raising substantial funds, signaling a thaw in the funding landscape after the so-called ‘funding winter’ of 2022.
