Pocket FM lays off 75 employees in cost-cutting move, numbers may rise

A Pocket FM spokesperson confirmed the layoffs, stating that the move is part of efforts to secure long-term sustainability and success. The company reported a loss of Rs 165 crore in FY24

Audio series platform Pocket FM is laying off around 75 employees as part of a restructuring plan, according to a Moneycontrol report. This is the second round of layoffs at the company in the past six months, aimed at cutting costs and moving closer to profitability.

 

Reports suggest that in October 2024, Pocket FM laid off 50 employees, and earlier in July, it ended contracts with 200 freelance writers. A company spokesperson confirmed to Moneycontrol about the recent layoffs, stating, “As part of our commitment to building a more efficient and profitable organisation, we have made the difficult decision to part ways with close to 75 of our valued team member.

   

Sources suggest the final number of layoffs could be higher, as the process is ongoing. The spokesperson said, “This step, while challenging, was necessary to ensure the long-term sustainability and success of our organisation.” The layoffs come shortly after rival Kuku FM reportedly laid off about 100 employees in November 2024.

 

Pocket FM boast a user base of over 200 million users, who have streamed more than 100 billion minutes of content in 2024 alone. The company also claims to have completed over 45 million transactions this year, with users spending an average of 115 minutes daily on the app.

 

Pocket FM business model

 

Pocket FM, founded in 2018 by Rohan Nayak, Prateek Dixit, and Nishanth Srinivas, hosts over 75,000 audio series in genres like romance, thriller, fantasy, and more. The platform offers content in English and several Indian languages, including Hindi, Tamil, and Bengali.

 

It operates on a freemium model where it offers consumers 15 minutes of free viewing for each of its audio series, after which they can choose to purchase coins for Rs 50-100. These coins can be used to unlock new episodes.

 

Pocket FM financials

 

Pocket FM reported consolidated revenue of Rs 1,051.97 crore for the financial year 2023-24 (FY24), marking an impressive six-fold increase from Rs 176.36 crore in the previous year. At the same time, the company's losses decreased to Rs 165 crore, down from Rs 208 crore in the prior financial year.

 

The revenue growth was reportedly driven by subscription revenue from micro-transactions, which came in at Rs 934.73 crore in FY24, up from just Rs 160 crore the previous year.

 

“This year (FY25), we are expecting about 80 per cent growth in revenue for our business,” Anurag Sharma, chief financial officer, Pocket FM, had told Business Standard.