Pocket FM’s FY22 Operating Expenses 11 Times Higher Than Operating Revenue
- ByStartupStory | April 13, 2023
Indian audio over-the-top (OTT) platform, Pocket FM, reports 10X increase in net loss to INR 171.6 Crore in FY22 due to rising expenses. However, the company’s operating revenue grew 11.3X to INR 17 Crore in FY22 from INR 1.5 Crore in FY21, primarily driven by membership and subscription fees. Total revenue, including other income, reached INR 17.55 Crore in the financial year under review.
Pocket FM, the startup in the Indian audio over-the-top (OTT) space, witnesses a 10X increase in total expenses to INR 189.14 Crore in FY22, compared to INR 19 Crore in FY21. Other expenses, including rent, advertising, and promotional costs, accounted for the largest chunk at INR 158.2 Crore, surging 10.8X from INR 14.7 Crore in FY21. Advertising and promotional expenses saw a significant increase of 13.9X to INR 128 Crore in FY22 from INR 9.22 Crore in FY21. Employee benefit expenses also rose by 7X to INR 29.2 Crore from INR 4.2 Crore in FY21. Overall, Pocket FM spent INR 11.1 to earn every INR 1 in operating revenue.
Pocket FM, a startup founded in 2018 by Rohan Nayak, Prateek Dixit, and Nishanth KS, offers audio content in various formats such as long-form content, audio shows, stories, novels, and podcasts in eight languages including Hindi, Tamil, Telugu, Malayalam, Bangla, English, Kannada, and Marathi. In its last funding round, Pocket FM raised $65 million in Series C funding led by Goodwater Capital, Naver, and Tanglin Venture Partners in the previous year. The startup had announced plans to utilize the funds for expanding into new languages, introducing AI capabilities in the app, and scaling up its existing audio creator community.
Pocket FM, a startup that has raised a total of $93.5 million in funding from investors including Lightspeed and Tanglin Ventures, approached the Delhi High Court last year, alleging copyright infringement by its rival Kuku FM for publishing audio summaries of books for which Pocket FM held exclusive licenses. However, it was reported that Kuku FM reached a settlement agreement with Pocket FM earlier this year. The overall music, radio, and podcast segment in India, projected to reach revenues of $1.17 billion by 2023 and $1.34 billion by 2027, according to Statista.
Calling all entrepreneurs, investors and business owners! The wait is finally over. The 2nd edition of Startup Story B2B Connect is back with a bang – and this time, we’re taking it up a notch. With more startups, more investors and bigger opportunities than ever before, this is your chance to connect, collaborate and take your business to the next level. Get ready for an unforgettable networking experience that’s set to change the game. Stay tuned for all the exciting updates! Register Now Here.
Follow Startup Story
Related Posts
