Pocket FM demonstrated improved financial efficiency, with its expense-to-earnings ratio dropping to 1.16 in FY24, compared to 2.18 in FY23. This indicates the company spent ₹1.16 for every rupee earned in FY24, nearly half of what it spent the prior year.
Rohan Nayak, Co-Founder and CEO of Pocket FM, in an interview with CNBC-TV18, stated, “We’ve scaled 5x in revenue, and our EBITDA margins have improved significantly. Our gross margin, over 65%, is among the highest in the entertainment industry.”
Since its inception in 2018, Pocket FM has pioneered the growth of audio series as a novel entertainment category. According to Nayak, the format has evolved into a 24/7 entertainment option for users, rivalling movies and TV shows.
“Our listeners are now binging over 120 minutes daily. In 2024 alone, we saw 100 billion minutes streamed across our 200 million listener community,” said Nayak. He also noted a growing willingness among users to pay for premium content, with the platform recording over 45 million microtransactions during the year.
According to Nayak, Pocket FM has already achieved operational profitability in its core markets, India and the US, while newer markets in Europe are gaining traction. “Profitability is more of a choice right now rather than an inevitability,” said Nayak.
The company plans to invest in emerging genres like fantasy and science fiction, which have shown promising growth. Additionally, Europe is poised to be a key focus for 2025, with significant traction already observed in the UK and Germany. Nayak also revealed plans to expand into France and Italy in the coming quarters.
Watch the accompanying video for the entire conversation.
