Audio over-the-top (OTT) platform Pocket FM has introduced its online novel reading platform, Pocket Novel, as part of its strategy to broaden its offerings to other entertainment segments and formats. The startup announced on Tuesday (February 20) its plan to invest $40 million in this new venture, aiming to achieve a $100 million annualized revenue run rate (ARR) globally by 2025.
Rohan Nayak, Pocket FM’s co-founder and CEO, stated, “We are developing an ecosystem that defines the essence of entertainment by specializing in discovering and distributing unique and unheard stories. These stories are adaptable across various formats and geographies, creating a strong model with millions of audiences.”
Nayak also expressed the startup’s intention to capitalize on its successful audio series trajectory. “Our IP creation engine is tailored to create and distribute content across diverse categories, disrupting the entertainment landscape,” he added.
Established in 2018 by Nishanth KS, Prateek Dixit, and Nayak, Pocket FM is an audiobook platform offering content in multiple languages.
Pocket FM aims to tap into the underpenetrated novel market in India with its latest development. The startup has launched Pocket Novel with a base of 150,000 writers and aims to build a community of 1 million writers, enhancing its library to 2 million novels by 2025.
The startup claims that reader engagement on the platform has exceeded 100 minutes, covering genres such as romance, drama, suspense, fantasy, and sci-fi. During its beta phase, Pocket Novel reports that over 2% of novels have amassed over 500,000 reads, with over 5% exceeding 100,000 reads.
In the previous year, Pocket FM secured $16 million in funding from Silicon Valley Bank to expand its audio library, grow its creator community, and boost revenue. Subsequently, its India arm reported a 56% year-on-year (YoY) reduction in net loss to INR 75.7 crore in the financial year 2022-23 (FY23), with revenue increasing and advertising expenses decreasing.
