Quick Take
- Pocket FM shut Pocket TV, its beta microdrama app, to refocus on its core audio platform.
- The startup is profitable, crossed $400 Mn ARR, and grew FY25 revenue 68% to Rs 1,768 Cr.
- The exit comes as rivals Kuku FM, ShareChat, and JioHotstar bet big on microdrama growth.
In This Article
In a contrarian move, Pocket FM shuts Pocket TV, its beta microdrama app, to double down on its profitable core audio platform, the company confirmed on June 25, 2026.
The decision lands at an odd moment. India’s microdrama segment is booming, with Kuku FM, ShareChat, and JioHotstar’s Tadka all racing in. Yet the audio startup is stepping back from short video to protect its main engine. Pocket FM is built by parent firm Pocket Entertainment.
StartupFeed Insight
The signal here is discipline, not weakness. Pocket FM is choosing margin over land grab, a rare call when peers are burning cash on microdrama. A 5% EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) base and $400 Mn ARR (Annual Recurring Revenue) give it room that loss-making rivals lack. StartupFeed believes audio remains its moat, where Pocket FM faces fewer deep-pocketed enemies than in video. Watch for an IPO (Initial Public Offering) signal: if Pocket FM files draft papers within the next 12 to 18 months, this clean-up of side bets will look like deliberate pre-listing housekeeping. By StartupFeed Desk.
Pocket FM Shuts Pocket TV: The Numbers
Pocket FM shuts Pocket TV as a strategic refocus, not a financial rescue, since the parent company reports profit and cash-flow strength. A company spokesperson told media that Pocket TV launched as a product experiment and made no material contribution to the business.
| Metric | Detail | Notes |
|---|---|---|
| Action | Pocket TV shut down | Beta microdrama vertical |
| FY25 Revenue | Rs 1,768 Cr | Up 68% from Rs 1,052 Cr (company claim) |
| ARR | $400 Mn+ (Rs 3,400 Cr) | Crossed in March 2026 (company claim) |
| Profitability | ~5% EBITDA, cash-flow positive | Period not specified (CEO, April 2026) |
| Total Raised | $196 Mn (Rs 1,630 Cr) | Last valued at $750 Mn in 2024 |
| Last Round | $103 Mn Series D | Closed in 2024 |
The most striking fact: Pocket FM is profitable while shutting a unit in a booming category. Founder and CEO Rohan Nayak said in April 2026 that the startup was free cash flow positive with nearly 5% EBITDA, without naming the period.
About Pocket FM
Pocket FM is an audio series platform founded in 2018 by Rohan Nayak, Nishanth KS, and Prateek Dixit. The company runs a freemium model, where listeners unlock episodes using coins. It claims over 100 million listeners and crossed $400 Mn ARR in March 2026. Backers include Lightspeed, Stepstone Group, Tencent, and Times Internet.
What Does This Mean For Microdrama?
Microdrama is short-form vertical video, with episodes that usually run two to three minutes. The format is one of India’s fastest-growing content waves, drawing entrants from Kuku FM and ShareChat to JioHotstar’s Tadka. Earlier this year, gaming startup Zupee acquired Mumbai-based Vertical TV to enter the segment.
“Pocket FM is already profitable and cash-flow positive, with a strong balance sheet and healthy growth across its key markets,” a Pocket FM spokesperson said.
Pocket FM reads the same boom differently from its rivals. Instead of chasing video share, the firm is protecting its audio profits and pushing harder into overseas markets. The bet is that focus beats breadth in a crowded, cash-heavy field.
How Does Pocket FM Compare To Rivals?
Pocket FM competes in audio OTT (Over-The-Top) against Kuku FM and Audible, in a market projected to reach $3.2 Bn (Rs 26,600 Cr) by 2030. Its closest rival, Kuku FM, is moving the opposite way, leaning into microdrama via Kuku TV ahead of a planned public listing.
| Company | FY26 Revenue | Microdrama Bet |
|---|---|---|
| Pocket FM | $400 Mn+ ARR | Exited (shut Pocket TV) |
| Kuku FM | Rs 1,400 Cr+ | Doubling down (Kuku TV) |
What sets Pocket FM apart is its choice to defend a profitable audio core rather than spend to win an unproven video race.
What’s Next
Pocket FM now plans to sharpen its audio platform and expand in overseas markets, especially the US and Europe. The company is also said to be eyeing an IPO, though it has shared no timeline yet. Its rival Kuku FM has already filed confidential draft papers for a Rs 15,000 Cr listing. Will audio-first focus pay off better than the microdrama land grab?
Frequently Asked Questions
Last updated: June 25, 2026 at 18:30 IST
Disclaimer: This article is for informational purposes only and does not constitute investment advice. StartupFeed and its authors are not SEBI-registered investment advisors. The analysis above is based on publicly available information and should not be the sole basis for any investment decision. Please consult a SEBI-registered financial advisor before making investment decisions.
Written by Soumya Verma. Published: June 25, 2026. Updated: June 25, 2026. Have a tip? Write to us at editorial@startupfeed.in.
