Lightspeed-Backed Pocket FM Enters Digital Novel Space, Earmarks $40 Mn For New Venture

Audio over-the-top (OTT) platform Pocket FM has rolled out its online novel reading platform Pocket Novel aiming to expand its offerings to other entertainment segments and formats.

The startup said in a statement on Tuesday (February 20) that it is also 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.

Pocket FM’s cofounder and CEO Rohan Nayak said, “We are building an ecosystem that shapes the essence of entertainment which specializes in discovering and distributing unique and unheard stories. These are adaptable across formats and geographies, creating a robust model with millions of audiences.”

He further added that the startup aims to leverage the experience it gained from its successful audio series trajectory. “Our IP creation engine is designed to produce and disseminate content across diverse categories and brings disruption in the entertainment landscape,” he added. 

Founded in 2018 by Nishanth KS, Prateek Dixit, and Nayak, Pocket FM is an audio book platform that offers content across multiple languages. 

The startup said that with the latest development, it aims to leverage the underpenetrated novel market in India. 

The startup has launched Pocket Novel with a base of 150K writers and envisions building a community of 1 Mn writers and strengthening its library to 2 Mn novels by 2025. 

The startup claims the readers’ engagement on the platform has surpassed 100 minutes across romance, drama, suspense, fantasy, and sci-fi genres. During its beta phase, Pocket Novel claims that more than 2% of novels have garnered over 500,000 reads, and over 5% have exceeded 100,000 reads.

Last year, Pocket FM secured a funding of $16 Mn from Silicon Valley Bank for expanding its audio library, augmenting its creator community and accelerating revenue

Later it reported that its India arm narrowed its net loss by 56% year-on-year (YoY) to INR 75.7 Cr in the financial year 2022-23 (FY23) as revenue jumped and ad expenses were slashed.