“We are profitable today with AI”: Pocket FM CEO Rohan Nayak

Turning a profit in a sector like entertainment has always been a hard ask, given the high upfront costs. It takes an endless stream of content to keep audiences hooked. But for audio storytelling platform Pocket FM, pivoting to using AI in content was a game-changer.

“Today, more than 90% of the content on our platform is AI-generated,” said Rohan Nayak, Co-founder and CEO of Pocket FM, in a fireside chat with Shradha Sharma, Founder and CEO of YourStory, at TechSparks 2025. 

“And because 100% of our marketing videos are AI-generated, and we’ve launched new markets like Germany and Latin America entirely through AI, not with a team, we are profitable today,” said Nayak.

At the beginning of 2025, Pocket FM was burning a lot of cash. But as the startup began focusing on AI initiatives, it started reflecting on its bottomline and the profitability shot up, he added.

“We saw that AI has grown because we found a lot of great shows from our writers, which attracted new users and drove higher retention, but it also had an absolute 20% impact on our bottom line,” added Nayak. “We can proudly say that we are generating free cash flow.”

Healthy growth

Pocket FM, Nayak said, is growing at a healthy 80% year-on-year rate, with its annual recurring revenue (ARR) touching $350 million.

“I don’t think we would have scaled so much without AI,” he added. “Our projections used to be 40% growth, but then the moment we switched [to AI], we found so many great shows, so many talented writers all around the world.”

For Nayak, one of the most fulfilling wins was a personal one.

“The biggest moment for me was when a writer in Banaras saw his story being listened to by audiences in America. And he was able to support his family with the revenue he made from the platform,” he recalled. “I think it has been phenomenal.” 

“I’ve come to believe that most stories across the world have the same core. Like, you add cultural nuances and everything on top of it, but if you strip down a story to its core, it’s actually very similar,” he adds.

FY24 was a breakout year for Pocket FM, as The CapTable reported earlier. The company’s revenue jumped sixfold, crossing Rs 1,000 crore, driven largely by strong traction in the US market. 

Losses narrowed 21% to Rs 165 crore, while its expense-to-earnings ratio improved sharply, from 2.18 to 1.16. The company has also faced headwinds, including missed targets, layoffs, and stalled fundraising efforts.