Pocket FM is currently going through a major phase of growth and change. The Indian audio storytelling platform is reporting strong revenue growth, expanding globally, and using artificial intelligence to speed up content production. At the same time, the company is dealing with layoffs, leadership exits, and legal issues in the United States.
Pocket FM has become one of India’s fastest-growing entertainment startups in recent years. The platform is popular for its audio series across genres like romance, thriller, drama, and fantasy. It allows users to listen to stories for free while also giving them the option to unlock episodes using virtual coins.
Pocket FM’s Revenue Growth Remains Strong
Pocket FM’s business has grown rapidly over the last year. Reports say the company has doubled its Annual Recurring Revenue (ARR) to around $400 million within just 12 months. The company is also expected to touch nearly $450 million ARR in 2026 if growth continues at the same pace.
In FY25, Pocket FM reportedly earned Rs 1,768 crore in revenue, showing a 68% year-on-year increase. Most of this income comes from the platform’s microtransaction model, where users buy coins to unlock premium episodes. Around 75-80% of the company’s revenue comes from these purchases, while advertising contributes nearly 15-20%.
The platform says users spend more than 104 billion minutes every year listening to stories on the app. Some of its most successful shows have also generated huge earnings. Reports claim series like “Insta Millionaire” and “Saving Nora” earned millions of dollars through listener engagement.
Pocket FM is now reportedly in talks to raise another $100 million to $120 million in funding. If the funding round is completed successfully, the company’s valuation could rise close to $2 billion.
AI Is Playing a Big Role in Content Creation
Artificial intelligence has become an important part of Pocket FM’s strategy. The company has started using AI tools across its content production process to reduce costs and increase efficiency.
Reports suggest that the cost of producing one hour of content has dropped from nearly $1,000 to around $50-60 because of AI integration. This has helped the company improve margins while creating more content faster.
Pocket FM has also launched an AI writing tool called “CoPilot.” This tool helps writers improve dialogues, create stronger cliffhangers, maintain story consistency, and fix grammar issues. The company also studies listener behaviour closely to understand where users stop listening, helping creators improve story engagement.
The company is also planning bigger AI projects in the future. Reports say Pocket FM may launch its own large language model (LLM) next year. It is also exploring ways to turn its popular audio stories into comics, webtoons, and short video dramas.
Layoffs and Restructuring Create Employee Concerns
Even though the company is growing financially, Pocket FM has recently reduced its workforce. Reports say around 100 to 130 employees were laid off from teams such as content, product, and technology.
Some affected employees reportedly accepted severance packages, while others were placed under performance review. There are also reports that more job cuts could happen in the coming months as the company focuses on improving profitability.
In another major move, Pocket FM reportedly shifted more than 2,000 contract workers to the payroll of staffing company Quess Corp. These workers mainly supported the company’s US content operations.
Pocket FM, however, has denied that this should be seen as mass layoffs. Outgoing CFO Anurag Sharma described the changes as strategic restructuring focused on long-term business goals and better operational efficiency.
Leadership Changes Continue at Pocket FM
Pocket FM is also seeing changes in its leadership team. Chief Financial Officer Anurag Sharma has resigned and is currently serving his notice period. Reports say he plans to explore entrepreneurial opportunities. At the same time, Lalit Gangwar has been promoted as the company’s new Chief Operating Officer (COO). He will now lead global operations, growth, and monetisation efforts.
Some other senior executives have also reportedly left the company in recent months, adding to the ongoing transition within the organisation.
US Lawsuit and Global Expansion Challenges
Pocket FM is also facing legal trouble in the United States. A group of independent contractors has reportedly filed a class-action lawsuit against the company. The workers claim they were misclassified, underpaid, denied breaks, and treated unfairly. Apart from the lawsuit, some former employees have also shared complaints online about a stressful work culture and difficult deadlines.
The company is currently operating in more than 20 countries, but reports suggest that expanding in markets like the US and Europe has become more challenging than expected. Pocket FM may also face future regulatory pressure related to AI-generated content, synthetic voices, and creator payments in Western markets. These rules could increase costs and create hurdles for companies using AI heavily in content creation.
Despite these challenges, Pocket FM remains one of India’s most closely watched digital entertainment startups. Its future growth will depend on how well it manages expansion, AI innovation, employee concerns, and legal issues while continuing to grow its audience worldwide.