Podcasting Pioneer: The Visionary Journey of Pocket FM’s Founders Rohan Nayak and Nishanth KS

In the era of short videos and rapid social media interactions, the founders of Pocket FM, Rohan Nayak and Nishanth KS, dared to offer long-format audio series in India. This bold move initially seemed at odds with people’s shrinking attention spans but proved to be a remarkable success. In just four years since its launch, Pocket FM has achieved an impressive $25 million in annualized revenue, aiming to reach $100 million ARR (annualized revenue run-rate) by the next year.

The Vision of Becoming the “Netflix of Audio”

Rohan Nayak, CEO and co-founder of Pocket FM, envisions the platform as the “Netflix of audio OTT platforms.” The startup’s unique approach of releasing bingeable long-format series resonated with users and drove engagement, increased listeners, and boosted revenue. This all-at-once bingeable release model, inspired by Netflix’s success in video streaming, has played a pivotal role in Pocket FM’s rapid growth. Pocket FM, co-founded by Rohan Nayak, Nishanth KS, and Prateek Dixit, offers diversified content in multiple languages and genres. The inspiration for this venture came during Nayak’s daily commutes to work when he sought more engaging and entertaining content beyond repetitive music and irrelevant FM stations. This led to the realization of the need for audio storytelling in Indian languages.

AI-Enhanced Audio Content

One of the key drivers behind Pocket FM’s growth is its innovative micro-payment model, referred to as “freemium.” In October, the platform crossed the significant milestone of $25 million ARR, marking substantial progress from $2 million in September 2021. The company attributes its success to its robust micro-payment model, with over 500,000 monthly transactions. Strategic utilization of artificial intelligence (AI) and machine learning (ML) is at the core of Pocket FM’s growth. These technologies have empowered the platform to personalize content, create and produce content, and offer customized discounts using micro-payments. AI and ML have also enhanced content recommendation engines, leading to higher user engagement and retention.

AI-enabled strategies have led to a 16 percent increase in transacting users and a 10-12 percent rise in revenue since April 2022. The platform covers a range of languages, including Hindi, English, Tamil, Telugu, Kannada, Malayalam, Marathi, and Bengali, and offers various genres such as romance, horror, fantasy, sci-fi, mythology, suspense, and thrillers.

Pocket FM’s audience predominantly consists of individuals aged 15-35, with top cities like Bengaluru, Mumbai, Delhi, Pune, and Hyderabad. However, the audio series are also popular in smaller towns and rural areas, with users spending an average of 100 minutes on the platform daily. The platform has over 733 audio series and audiobooks. Since introducing audiobooks in March in partnership with publishers like Harper Collins, Juggernaut, and Manjul Publishing, Pocket FM has achieved over 120,000 audiobook sales every month. Pocket FM’s growth is further evident in its online reading platform, ‘Pocket Novel,’ which has seen over 100,000 novels uploaded by the writer community. Users spend an average of 100 minutes on this platform daily, and it has recorded over 400 million reads.

To fuel its growth, Pocket FM has raised a total of $93.5 million, with a substantial capital infusion of $65 million in March, led by investors like Goodwater Capital, Tanglin Venture Partners, and Naver. Notable investors include Lightspeed, Tencent, and Times Internet. Pocket FM’s expansion into the US market garnered significant investor interest. Pocket FM’s successful journey has excited investors due to its data-driven approach, focus on sustainable unit economics, and expansion into global markets. The platform’s creator community, Pocket Studios, is also expected to become an IP powerhouse, not only for audio content but for licensing out IP for other formats like videos and movies.

While the road to profitability may have some challenges, Pocket FM’s founders aim to make their content accessible across various platforms, ensuring a seamless experience on wearable devices, iOS, web, mobile, fire sticks, and home speakers like Alexa. Pocket FM’s focus on sustainable and profitable growth, with strong unit economics, has yielded high gross margins and a low customer acquisition cost (CAC) payback period. The company’s CAC payback period is currently less than 12 months. As Pocket FM continues to expand its content and creator community, the company sees IPO listing as part of its future ambitions, aiming to make its mark on stock markets.

With growing internet and smartphone penetration, the audio OTT industry in India has undergone a transformation. While major players focus on music and podcasts, Pocket FM has carved its niche in long-format audio content, offering a unique and engaging experience for its audience. The success of Pocket FM demonstrates that there is a growing global appeal for audio content platforms, inspiring its founders to aim for even greater heights in the audio OTT industry.