Pocket FM Eyes 15%-20% EBITDA Margin, Global Expansion With AI-Led Content Push

Pocket FM aims to increase its EBITDA margin to 15%-20% from a current 5%, as disclosed by cofounder Prateek Dixit. The audio series platform is leveraging AI to reduce production costs and accelerate content creation, with AI powering about 90% of its production and 80%-90% of creative processes. Pocket FM recently reported annual recurring revenue (ARR) surpassing $500 Mn.

The startup, founded in 2018 by Dixit, Rohan Nayak, and Nishanth KS, offers audio content across multiple languages and genres and has raised $196 Mn, with a valuation of $750 Mn. Pocket FM is also expanding into Japan and South Korea, as well as exploring interactive storytelling and gaming opportunities. The company's AI Content Engine, Sherpa, is a fiction-writing platform that helps creators build long-form stories for hundreds of episodes.