Pocket FM co-founder Rohan Nayak claimed the company doubled its annualised revenue to $500 million, crediting AI content. This comes as the company, last valued at $750 million, now seeks a $1.5-2 billion valuation by rebranding as an AI-led business. Former employees, competitors, and investors question the legitimacy of these reported numbers.
How We Got Here
Pocket FM raised $103 million as an audio platform in early 2024. By mid-2025, it tried to raise again by repositioning as an "IP business," but that attempt fell through.
The Numbers
- Pocket Novels, a reading app launched in February 2024, was scaled back within 18 months.
- Microdrama app Pocket TV was shut down in India in October 2025, just months after its launch.
- Industry executives note "AI is the flavour of the town," making fundraising and media mentions easier.
- Early-stage VC Pranav Pai (3one4 Capital) stated institutional investors do not rely on numbers posted on social media.
- Closest rival Kuku FM has filed for an IPO, adding pressure to Pocket FM's narrative.
What Happens Next
🇮🇳 Why This Matters for India
For product managers and founders in Hyderabad building content platforms, this highlights the pressure to adapt narratives for investor appetite, often at the cost of product focus.
The Take
Pocket FM is chasing the current VC narrative around AI, rather than demonstrating a consistent product strategy. This high-frequency pivoting creates churn for employees and raises questions for investors assessing long-term viability against rivals like Kuku FM.
Source:
The Ken ↗