Pocket FM Completes $8.3 Million ESOP Buyback Following Series D Funding Round

Pocket FM Completes $8.3 Million ESOP Buyback Following Series D Funding Round

Pocket FM Completes $8.3 Million ESOP Buyback Following Series D Funding Round Pocket FM, a leading audio series platform, has recently concluded its inaugural Employee Stock Ownership Plan (ESOP) buyback program, amounting to $8.3 million. This strategic move follows the company’s announcement of a substantial $103 million Series D funding round, further solidifying its position in the audio content market.

Pocket FM Completes $8.3 Million ESOP Buyback Following Series D Funding Round

Former and current employees holding vested stocks in Pocket FM participated actively in the buyback process, underscoring the company’s commitment to rewarding its workforce for their contributions. The initiative aligns with Pocket FM’s ethos of fostering a culture of employee ownership and engagement.

The Bengaluru-based company has been experiencing robust growth, evident from its impressive financial performance. With a valuation reaching $750 million during its latest funding round, Pocket FM has reported significant milestones, including surpassing $150 million in Annual Recurring Revenue (ARR) and sustaining a remarkable 57% quarter-on-quarter growth rate. In 2023 alone, the platform processed over 20 million transactions and achieved a noteworthy milestone of crossing $100 million in average revenue run rate (ARR) in the United States.

The ESOP buyback coincides with reports of Pocket FM being in advanced discussions to secure additional funding, potentially propelling it to the coveted unicorn club. This strategic move underscores the company’s confidence in its growth trajectory and commitment to enhancing shareholder value.

Pocket FM’s ESOP buyback follows a growing trend among growth-stage companies, with notable players like Meesho, MyGate, and Classplus rolling out similar programs to incentivize and retain talent. According to data compiled by TheKredible, ESOP buybacks and liquidity events totaled nearly $802 million in 2023, signaling a significant uptick compared to previous years.

Amidst its rapid expansion, Pocket FM continues to bolster its content library, boasting over 2,000 exclusive audio series and a vast catalog of more than 400,000 episodes spanning various genres and languages. While the company’s comprehensive financial performance for fiscal year 2024 is yet to be disclosed, Pocket FM’s revenue surged eightfold to Rs 148.7 crore in the fiscal year ending March 2023. Additionally, the company has demonstrated improved unit economics, significantly reducing its losses over the same period.

Pocket FM’s successful ESOP buyback underscores its commitment to fostering a culture of employee ownership and recognition. With a compelling growth trajectory, bolstered by impressive revenue milestones and strategic initiatives, Pocket FM is well-positioned to consolidate its position as a dominant player in the audio content space. As the company continues its expansion journey, fueled by innovative content offerings and strategic partnerships, it remains poised for sustained success in the dynamic digital entertainment landscape.

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