Pocket FM Raises Rs 850 Crore In Funding Round Led By Lightspeed

Audio entertainment platform Pocket FM has raised $103 million (about Rs 850 crore) in a funding round led by Lightspeed with participation from Stepstone Group, the company said on Wednesday.

The latest round brings Pocket FM’s total funding to date reached $196.5 million.

"Pocket FM has raised $103 million in Series D funding. The round was led by Lightspeed, with participation from Stepstone Group," the company said in a statement.

The company expects new funding to strengthen Pocket FM's push into the U.S. market and support global expansion as the company plans to expand into Europe and LATAM markets in 2024.

The company announced its U.S. entry in the December 2022 quarter, and its revenue has surpassed $100 million annual annual recurring revenue in the U.S. market.

The company claims to have surpassed $150 million ARR and is growing at 57% quarter-over-quarter.

Pocket FM claims to have clocked over 20 million transactions in 2023 and registered over 115 minutes of daily user engagement on average.

"Our robust content library of audio series and a strong consumption behaviour on the platform is shaping the future of entertainment. Our focus remains on tapping into unique and exclusive stories to solidify our leadership in this emerging category and create a strong IP playbook. This latest funding validates our vision and the possibilities we bring to disrupt the industry," Pocket FM CEO and co-founder Rohan Nayak said.

Lightspeed Partner Harsha Kumar said Pocket FM's vision to set up a sustainable and profitable business, backed by its unique pricing strategy sets it apart in the segment.

"It emerges as a great reference for the entertainment landscape, with its capability to demonstrate strong unit economics. They are not just building a new category but democratising the entertainment landscape with a tech-driven approach," Kumar said.