Internet group Naver co-led India-based audio streaming platform developer Pocket FM’s $65m series C round today as the popularity of podcasts and other non-music audio content grows.
The round was co-led with venture capital firms Goodwater Capital and Tanglin Venture Partners and it increased the company’s overall funding to $93m.
Founded in 2018, PocketFM operates an online hosting platform for podcasts and audiobooks that boasts more than 100,000 hours of content. Proceeds from the funding will be used to expand into new languages, invest in artificial intelligence technology and grow its community.
Media group Bennett Coleman & Co (BCC) took part in a $22.4m series B round for the company in December 2021 that was led by Lightspeed India Partners and which also featured Tanglin Venture Partners.
Pocket FM’s $5.6m series A round was led by internet and gaming group Tencent in October 2020, with backing from BCC subsidiary Times Internet and Lightspeed India.
The popularity of podcasting and other long-form audio content such as audiobooks as a form of digital media has risen steadily in recent years, with investment following closely behind for platforms catering to listeners and creators alike.
In developing nations like India the model is also being driven by an increase in smartphone penetration and lower mobile data costs as well as the wider availability of on-demand audio in local languages.
Although large players in the music streaming world such as Spotify have increased their podcast content in recent months, the largest funding round for a dedicated company in the space being a $580m round for China-headquartered Ximalaya in 2018 that included internet group Tencent.
Podimo, a Denmark-based open podcasting platform developer catering to creators with a subscription model, collected $78m in a November 2021 series B round. US-headquartered WaitWhat secured $12m in series B funding in June while Lebanon-based Podeo and Armenia-based Podcastle have also raised cash in the past year.
In addition to podcast hosting, adjacent models are also picking up steam. Sounder, the Serbia-based operator of an online platform helping podcasters manage and market their content, received $7.7m last month in a series A round backed by mass media company iHeartMedia.
Pocket FM co-founder and chief operating officer Nishanth KS said: “In addition to audio entertainment, we saw 12-times growth in consumption of self-help books and audio courses. Users are looking for high quality knowledge content to upskill themselves.
“With this investment, we are looking to grow our creator community further, be the biggest audio destination for entertainment and knowledge and (are) targeting 5 million paying users in the next 12 months.”
