Pocket FM revenue soars to Rs 1,000 Cr in FY24 boosted by US expansion, subscription growth
Pocket FM's revenue skyrocketed as subscription revenue surged nearly 6X to Rs 934.73 crore while advertising revenue jumped to Rs 89.34 crore in FY24.
Audio series platform Pocket FM posted global revenue of Rs 1,051.97 crore in FY24, a jump of 496% (6X) from Rs 176.36 crore in FY23 driven by its microtransaction-led subscription model and expansion in international markets.
Simultaneously, the Lightspeed-backed startup narrowed its losses by 21% to Rs 165 crore in FY24 compared to Rs 208 crore in FY23.
“We’ve been able to scale our microtransaction-driven subscription model with tremendous success,” Anurag Sharma, CFO of Pocket FM, told YourStory. Its subscription revenue grew nearly 6X to Rs 934.73 crore from Rs 160.05 crore in FY23.
According to the CFO, users receive 15 minutes of free daily content with an option to purchase additional listening time through coin packages. Pocket FM now sees about 85% of revenue from microtransactions. “This model gives users flexibility while ensuring a steady monetisation pathway for us,” Sharma added.
Additionally, advertising revenue witnessed a 7X increase, climbing to Rs 89.34 crore from Rs 12.5 crore in the previous year. “Our ability to attract advertisers stems from the immense engagement on our platform,” Sharma said, noting that users now spend an average of 120 minutes daily on the app.
Global expansion and content strategy
Sharma emphasised that global markets, especially North America, played a critical role in the company's revenue growth, which clocked nearly 70% of its revenue.
Pocket FM attributes much of its success to its AI-powered blockbuster engine, enabling the platform to identify and scale stories that resonate with global audiences.
“We now have seven shows that have crossed the Rs 100 crore revenue mark and over 30 shows that have earned more than Rs 10 crore,” Sharma said, adding that popular series like Insta Millionaire (a rags-to-riches drama) and My Vampire System (a fantasy hit) have driven this growth. In fact, My Vampire System saw nearly 25 million plays.
The CFO agreed that artificial intelligence (AI) has helped the company curate stories with mass appeal and launch them globally. The platform’s 40,000 AI-generated audio series contributed Rs 25 crore to total revenue in FY24.
However, he clarified that AI serves more as an enabler than a primary driver of content creation. “We balance AI-driven shows with our cinematic audio experiences using AI to experiment and refine our offerings,” he explained.
Pocket FM collaborates with a global community of over 2.5 lakh writers in a revenue-sharing model to leverage their creativity to localise and adapt stories for diverse audiences.
Within genres, Sharma said that romance and drama dominate the platform, aligning with trends seen in popular storytelling platforms. “Romance and drama were our first focus areas and remain central to our strategy. These connect deeply with audiences globally," he added.
Path to profitability
According to Sharma, improved operational efficiency has been central to Pocket FM’s disciplined growth. “We’ve reduced our expense-to-earnings ratio from 2.18 in FY23 to 1.16 this year.” This focus on efficiency, coupled with innovative monetisation strategies, has brought the company closer to profitability, Sharma said.
"Our focus has been that while we are creating this category right, we want to bring experience to different sets of users. We have identified users which we can currently monetise, but we are making sure we are bringing the stories from all across the world. We are giving voice to different creators and bringing their unique stories to our platform," he added.
The CFO believes that monetisation could follow if the company's engagement keeps going up.
Edited by Suman Singh