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Pocket FM seeks Rs 85.7 Cr in damages from KuKu FM; rival calls charges motivated

EntrackrEntrackr · 1d ago
Pocket FM seeks Rs 85.7 Cr in damages from KuKu FM; rival calls charges motivated
Medial

The ongoing legal dispute between audio platforms Pocket FM and Kuku FM reached the Delhi High Court on Thursday, with both sides presenting detailed arguments over alleged copyright and trademark violations. Pocket FM has sued Mebigo Labs, which runs Kuku FM, for allegedly copying five of its audio series and is seeking Rs 85.7 crore in damages along with a permanent injunction on the use of its content formats, titles, and artwork. During the virtual hearing, both sides presented their arguments in detail. Pocket FM alleged that Kuku FM has been copying its content for over four years, including shows, thumbnails, episode formats, and overall presentation, to mislead users and draw away its audience. It also pointed to past legal actions that led to content takedowns or temporary relief. In response, Kuku FM denied the broad allegations and told the court that the five disputed series involve significant research and analysis. The company asked for at least two weeks to file a detailed reply. Kuku FM also alleged that Pocket FM’s repeated legal actions are motivated and are timed to disrupt investor and public confidence, especially as the company is preparing for a potential IPO. The court took this into account but focused on the current copyright claims. Acknowledging the complexity of the dispute, the court directed Kuku FM to submit its written response within two weeks. The court also asked the company to provide a Chartered Accountant (CA) certificate detailing the revenue earned from the five allegedly infringing series since their prospective launch dates. Until further notice, Kuku FM has also been restrained from releasing any new episodes of the said shows. The next hearing is scheduled for August 29. The court said that both parties had presented a “balanced approach” in their arguments and decided not to issue any immediate directions on takedowns or relief, allowing the legal process to progress further. This isn’t the first legal clash between the two companies. Since 2022, they’ve filed multiple cases against each other. One was settled in December 2022, after Pocket FM accused KuKu FM of publishing audio summaries of books it held exclusive rights to. More recently, on May 30 this year, the Delhi High Court issued an injunction against KuKu FM in another case filed by Pocket FM, which alleged that KuKu FM had copied its original content, including a voiceover urging listeners to “aage ki kahani ke liye, log in kariye Pocket FM par,” directly mimicking Pocket FM’s format.

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Kuku FM reports Rs 88 Cr revenue in FY24; spends Rs 100 Cr on marketing

EntrackrEntrackr · 9m ago
Kuku FM reports Rs 88 Cr revenue in FY24; spends Rs 100 Cr on marketing
Medial

Audio content platform Kuku FM has grown at an impressive pace over the last two fiscal years. After achieving approximately 12-fold growth in FY23, the Mumbai-based firm has more than doubled its revenue in the fiscal year ending March 2024, while also reducing its losses. Kuku FM’s revenue from operations surged 2.1x year-on-year to Rs 88 crore in FY24, up from Rs 41 crore in FY23, according to its annual financial statements accessed from the Registrar of Companies. Kuku FM offers a diverse range of audio content across genres such as business, self-help, personal finance, history, religion, entertainment, and fitness. Revenue from paywalled subscription sales served as the sole source of income for Kuku FM. The Fundamental-backed company also made Rs 16 crore, primarily from interest on deposits and the sale of current investments, bringing total revenue to Rs 104 crore in FY24, up from Rs 49 crore in FY23. To expand its audio content reach, Kuku FM allocated over 50% of its total cash burn to advertising and marketing, which stood at Rs 102 crore in FY24—an 8.5% increase from FY23. Interestingly, spending on audio content creation was comparatively lower, at Rs 16 crore. According to financial statements, employee benefits for the Mumbai-based company grew by 37% in FY23. Meanwhile, information technology, legal, rent, payment gateway charges, and other overheads pushed total expenditure up by 21.2% to Rs 200 crore in FY24. FY23-FY24 FY23 FY24 EBITDA Margin -234.69% -89.42% Expense/₹ of Op Revenue ₹4.02 ₹2.27 ROCE -91.41% -46.38% The two-fold increase in scale and controlled expenditure helped Kuku FM reduce its losses by 18% to Rs 96 crore in FY24, down from Rs 117 crore in FY23. Its ROCE and EBITDA margin stood at -46.38% and -89.42%, respectively. Per unit, it spent Rs 2.27 to earn a rupee in FY24. Note: Kuku FM’s total outstanding losses stood at Rs 289 crore at the end of the previous fiscal year (FY24). Kuku FM has raised $71 million to date, including a $25 million Series C round led by the International Finance Corporation (IFC) and Nandan Nilekani’s Fundamentum Partnership in October 2023. The company was last valued at around $185 million. Kuku FM is clearly a case of proving a widely held perception wrong (getting Indians to pay for audio content), and getting rewarded handsomely with funding for the same. For, even while it deserves credit for proving that a market exists, it faces the obvious challenge of finding each of those paying customers at a very high cost. And in the cut throat world of streaming platforms, the cost of keeping its flock together somehow. Multiple well established players means a genre that takes off is likely to be picked up elsewhere as well, and very soon at that. International billings for sticky content is one way out of course. What is interesting is the low investments into audio content creation, indicating a low belief in trying to own exclusive content. A firm to watch, both with some hope and trepidation.

Pocket FM raises $103 Mn in Series D round

EntrackrEntrackr · 1y ago
Pocket FM raises $103 Mn in Series D round
Medial

Audio series platform Pocket FM has scooped up $103 million in its Series D round led by Lightspeed, and with participation from Stepstone Group. The new funding will strengthen Pocket FM’s push into the US market and also support global expansion as the company plans to expand into Europe and LATAM markets this year, the firm said in a press release. Pocket FM facilitates long-form audio content including audio shows, stories, and novels. The company will keep creating exclusive content libraries by providing a platform to the writer community. This latest round brings Pocket FM’s total funding to date to $196.5 million. Entrackr had exclusively reported about Pocket FM’s new fundraise in October last year. The Bengaluru-based company claims to have over 100,000 hours of content, including more than 2,000 exclusive audio series and more than 400,000 episodes across genres and languages. The company also said that it has surpassed $150 million (Rs 1,250 crore) ARR, and is growing at 57% QoQ. In 2023, it clocked over 20 million transactions and claimed that its US revenue crossed $100 million in average revenue run rate (ARR) during the last calendar year. “US audiences are the most engaged on the platform globally, spending over 135 minutes daily. The platform has approximately 10 million registered users in the US,” the firm added in the press release. The Indian entity of Pocket’s FM reported an 8.7X surge in its revenue to Rs 148.7 crore in FY23 from Rs 17 crore in FY22, according to startup data intelligence platform TheKredible. The firm also managed to contract its losses by 73.5% to Rs 45.47 crore in FY23 from Rs 171.6 crore in FY22. Its direct competitor Kuku FM raised $25 million in its Series C round in September last year. The company’s revenue from operations rose to Rs 41.2 crore during FY23 from Rs 4.4 crore in FY22.

Pocket FM completes its first ESOP buyback worth $8.3 Mn

EntrackrEntrackr · 1y ago
Pocket FM completes its first ESOP buyback worth $8.3 Mn
Medial

Audio series platform Pocket FM announced that the company has completed its first ESOP buyback worth $8.3 million. The buyback of stock comes soon after $103 million Series D funding announced by the Bengaluru-based company. Former and existing employees, holding vested stocks in the company, participated in this process, the company said in a press release. The company was valued at $750 million during the latest fundraise and has been growing at a high speed. According to PocketFM, it surpassed $150 million (Rs 1,250 crore) ARR, and is growing at 57% QoQ. In 2023, it processed over 20 million transactions and claimed that its US revenue crossed $100 million in average revenue run rate (ARR) during the last calendar year. The buyback has come at a time when Pocket FM is reportedly in late-stage conversation to raise a new round which would catapult it to the unicorn club. Pocket FM is the fourth growth stage company that has announced stock buyback in 2024. Recently, e-commerce company Meesho rolled out its largest ESOP buyback worth $25 million for 1,700 employees (past and current). Community management app MyGate and edtech company Classplus also announced their employee stock buyback program earlier this year. As per data compiled by TheKredible, the total EOSP buyback/payout/liquidity stood at nearly $802 million in 2023. In 2021 and 2022, the buyback amount was recorded at $440 and $200 million respectively. Pocket FM claims 2,000 exclusive audio series and more than 400,000 episodes across genres and languages. While the company’s real financial picture could be decoded when it discloses full-fledged FY24 results, Pocket FM’s revenue zoomed 8X to Rs 148.7 crore in the fiscal year ending March 2023. The firm also improved unit economics and reduced its losses by about three-fourths in the last fiscal year.

Pocket FM revenue soars to Rs 1,000 Cr in FY24 boosted by US expansion, subscription growth

YourStoryYourStory · 7m ago
Pocket FM revenue soars to Rs 1,000 Cr in FY24 boosted by US expansion, subscription growth
Medial

Pocket FM, the audio series platform, reported a 496% increase in global revenue to INR 1,051.97 crore in FY24. The growth was fueled by its microtransaction-led subscription model and expansion into international markets. Subscription revenue grew nearly six-fold, reaching INR 934.73 crore. The company also witnessed a 7X increase in advertising revenue, driven by increased user engagement on the platform. Global markets, particularly North America, played a significant role in the revenue growth. Pocket FM utilizes an AI-powered blockbuster engine to curate stories with mass appeal and has collaborated with over 250,000 writers to adapt stories for diverse audiences. The focus on operational efficiency and innovative monetization strategies has brought the company closer to profitability.

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