Pocket FM, an audiotech startup, recently secured a hefty $100 million funding injection from Lightspeed Venture Partners, marking a significant milestone in its journey towards expansion, particularly within the U.S. market. This funding forms a crucial component of Pocket FM’s overarching strategy, aimed at fortifying its position as a premier audiobook platform offering an extensive array of content spanning various languages and genres.
As per insights from a TimesNext report, Pocket FM is currently engaged in preliminary discussions with the Abu Dhabi Investment Authority (ADIA) for another substantial round of funding. This potential investment aims to further bolster Pocket FM’s ambitions for international expansion, with a particular focus on penetrating the U.S. market.
However, it’s imperative to acknowledge that these discussions are still at an early stage, and the outcome remains uncertain. Despite the nascent nature of these talks, Pocket FM has exhibited remarkable growth, with its annualized revenue run rate (ARR) reportedly skyrocketing by 6X-7X year-on-year, reaching an impressive $160 million by the conclusion of 2023.
With aspirations to attain a global ARR of $100 million by 2025, Pocket FM’s trajectory is underpinned by its innovative pay-as-you-go, non-subscription model, which has resonated strongly in the U.S. market, underscoring a robust fit with consumer preferences and burgeoning demand for its content. Established in 2018, Pocket FM operates on a freemium model, granting users complimentary access to a predetermined quota of episodes, with the option to procure additional content through micro-transactions.
This business model has proven immensely effective, with users spending over 110 minutes daily on the platform. Pocket FM’s distinctive content delivery approach, emphasizing serialized fiction and non-fiction across diverse genres, has set it apart within the fiercely competitive audio storytelling landscape.
In a strategic move last year, Pocket FM welcomed Vivek Bhutyani as Vice President of Content Marketing, further enhancing its content marketing strategy and organic growth initiatives. According to insights gleaned from a CrunchBase report, the audio series platform has amassed over $109 million in funding to date from an illustrious roster of investors, including Naver, Goodwater Capital, The Times Group, and Tencent, among others.
