Pocket FM Completes First ESOP Buyback For $8.3 M

SUMMARY

The buyback saw participation from a host of former and existing employees, the company said in a statement without providing further details

Rohan Nayak, Co-Founder and CEO, of Pocket FM said, “We're pleased that despite the challenging economic conditions, we remain unwavering in offering opportunities for wealth creation"

The development comes days after the Audio entertainment platform secured $103 Mn (INR 857 Cr) as a part of its Series D funding round led by Lightspeed

Audio entertainment platform Pocket FM, which counts Lightspeed and Stepstone Group among its investors, has completed its first employee stock ownership plan (ESOP) buyback worth $8.3 Mn (around INR 69 Cr).

The buyback saw participation from a host of former and existing employees, the company said in a statement without providing further details.

Rohan Nayak, cofounder and chief executive at Pocket FM, said, “We’re pleased that despite the challenging economic conditions, we remain unwavering in offering opportunities for wealth creation and fostering a culture of growth within Pocket FM.”

The development comes days after the startup secured $103 Mn (INR 857 Cr) as a part of its Series D funding round led by Lightspeed, with participation from Stepstone Group.

The fundraising pegged the company’s valuation at $750 Mn.

Pocket FM in February said that it was planning to invest $40 Mn in its new venture as it aims to clock $100 Mn in annualised revenue run rate (ARR) globally by 2025.

To date, the company has raised $196.5 Mn in total funding.

The startup was also in talks with sovereign wealth fund Abu Dhabi Investment Authority (ADIA) to raise a new “large” round of funding.

Besides, Pocket FM also rolled out its online novel reading platform Pocket Novel aiming to expand its offerings to other entertainment segments and formats.

Earlier, the company has put up an AI-led strategy for automation, content curation, production, and distribution. It is also working on leveraging GenAI to scale its entertainment content offerings and build AI-powered personalised recommendations to enhance the overall user experience.

Founded in 2018 by Nayak, Nishanth KS and Prateek Dixit, Pocket FM is an audio series platform offering content across multiple languages and genres such as romance, self-help, and motivation.

It claims to have more than 1 Lakh hours of content, which includes 2,000 plus exclusive audio series and 4 Lakh episodes across genres and languages in its platform.

The startup said it has surpassed $150 Mn annual recurring revenue (ARR) and is growing at 57% QoQ. In the US market, its revenue has surpassed $100 Mn ARR.

In FY23, Pocket FM’s India arm posted a 56% year-on-year (YoY) narrowed loss of INR 75.7 Cr and a 663% YoY surge in operating revenue to INR 129.7 Cr.