Audio series platform Pocket FM has raised $16 million, or around Rs 131 crore, in debt financing from Silicon Valley Bank, which First Citizens Bank recently acquired, the startup said on Tuesday.
The top audio company plans to use the funding to expand its library of audio series, grow its community of creators and accelerate revenue growth.
“The debt financing we have secured provides us with the resources to expand our content library and build the world’s largest platform for audio series.
Rohan Nayak, co-founder and CEO of Pocket FM, said: “This investment is a testament to our growth trajectory and mission to revolutionise the audio entertainment space. We are excited to build on this momentum, bringing more engaging content to our audience.”
Founded in 2018, Pocket FM has raised $93.5 million as of its Series C round. With the new debt financing round, the total capital injection has increased to $109.5 million.
“We thank Silicon Valley Bank for their confidence and belief in Pocket FM’s strong revenue metrics and innovative approach to audio entertainment. As they join us on our growth journey, we will continue to accelerate our growth curve and strengthen our content library, offering the audio series its Identity,” said Anurag Sharma, vice president of finance at Pocket FM.
Pocket FM claims to have grown revenue 12 times last year, surpassing an ARR (annualised revenue run rate) of $25 million by October 2022.
The startup claims it caters to a global community of 80 million listeners who spend an average of more than 150 minutes per day.
“Pocket FM has an innovative vision for audio storytelling and is helping to position it as a mainstream entertainment format.
“Its unique approach to audio entertainment and impressive unit economics demonstrate significant revenue potential in a large addressable market. We are excited to partner with Pocket FM,” said Chris Cameron, Senior VP at Silicon Valley Bank.
SVB began operations after First Citizens BancShares acquired all of its assets and liabilities from the Federal Deposit Insurance Corporation (FDIC) in the last week of March.
First Citizens BancShares continues to retain the old SVB brand name.