Pocket FM’s net loss widened 10X to INR 171.6 Cr in FY22 from INR 17.1 Cr in FY21
Pocket FM, which primarily earns revenue from membership and subscription fees, saw its operating revenue grow to INR 17 Cr in FY22
Total expenses ballooned 10X to INR 189.14 Cr, with advertising and promotional spending at INR 128 Cr
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Indian audio over-the-top (OTT) platform Pocket FM’s net loss widened 10X to INR 171.6 Cr in the financial year 2021-22 (FY22) from INR 17.1 Cr in FY21 due to a sharp rise in expenses.
PocketFM, which primarily earns revenue from membership and subscription fees, saw its operating revenue grow 11.3X to INR 17 Cr in FY22 from INR 1.5 Cr in FY21. Including other income, total revenue stood at INR 17.55 Cr during the year under review.
Meanwhile, the startup’s total expenses ballooned 10X to INR 189.14 Cr from INR 19 Cr in FY21.
At INR 158.2 Cr, other expenses accounted for the largest chunk of expenses. Other expenses, which included rent, advertising and promotional cost, among others, zoomed 10.8X from INR 14.7 Cr in FY21.
Advertising and promotional expenses surged 13.9X to INR 128 Cr in FY22 from INR 9.22 Cr in FY21. Meanwhile, employee benefit expenses rose 7X to INR 29.2 Cr from INR 4.2 Cr in FY21.
Overall, the startup spent INR 11.1 to earn every INR 1 in operating revenue.
Founded in 2018 by Rohan Nayak, Prateek Dixit, and Nishanth KS, Pocket FM offers audio content in long formats, audio shows, stories, novels, and podcasts. Its app hosts audio content and enlists the talents of writers and voice actors, creating content in eight languages — Hindi, Tamil, Telugu, Malayalam, Bangla, English, Kannada and Marathi.
Pocket FM last raised $65 Mn in a Series C funding round, led by Goodwater Capital, Naver, and Tanglin Venture Partners last year. The startup then said it would use the funds to expand into new languages, introduce AI capabilities in the app, and scale up its existing audio creator community.
In total, the startup has raised $93.5 Mn in funding till date. It is backed by marquee names such as Lightspeed, Tanglin Ventures.
Last year, Pocket FM approached the Delhi HC claiming that its rival Kuku FM was in contravention of the copyright law as it published audio summaries of a few books that the former had an exclusive licence for. However, Kuku FM reportedly entered into a settlement agreement with Pocket FM earlier this year.
The overarching music, radio and podcast segment, which as per Statista, is projected to reach a revenue of $1.17 Bn in India by 2023 and $1.34 Bn by 2027.
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