Audio entertainment platforms like Pocket FM, Kuku FM, and Pratilipi FM are witnessing a remarkable surge in user engagement and revenue, especially in non-metro cities. A combination of affordable subscription plans, diverse content libraries, and artificial intelligence (AI)-powered personalization is driving this growth.
Pocket FM, for instance, saw its global revenue soar sixfold to over ₹1,050 crore in FY24, while its losses reduced by 21% to ₹165 crore. The platform’s subscription revenue also surged to ₹934 crore, up from ₹160 crore the previous year. CFO Anurag Sharma highlighted that user engagement, currently at 120 minutes per day per user, has been bolstered by original and exclusive shows.
Similarly, Bengaluru-based Kuku FM doubled its revenue in FY24 and anticipates continued growth in FY25. Co-founder and CEO Lal Chand Bisu attributed this success to strategic content expansion in regional languages like Hindi, Tamil, and Marathi. Meanwhile, Pratilipi FM, a smaller audio vertical of the storytelling platform Pratilipi, recorded 300% growth between August and November. CEO Ranjeet Pratap Singh revealed plans for a $10-12 million funding round and a potential IPO by 2026.
Freemium Models and AI Drive Growth
The freemium model—a mix of free and premium content—has been instrumental in drawing users, said Brijesh Damodaran, Managing Partner at Auxano Capital. Affordable subscription pricing, coupled with AI-driven personalization, ensures higher user retention and monetization.
“AI has enabled innovative monetization strategies and greater efficiency, while global expansion remains a key focus,” Sharma added. Long-form audio fiction, a relatively new genre in India, has shown strong potential in terms of user engagement and entertainment value.
Regional Content Leads the Way
Local language content continues to dominate user preferences. Platforms are investing in creating fiction and non-fiction narratives in Hindi, Tamil, Marathi, and other regional languages to broaden their audience base. This strategy has helped platforms reach beyond metro cities, creating a larger market for audio entertainment.
According to Redseer Strategy Consultants, more than 80% of audio platform users now pay for subscriptions, with spending on audio content accounting for nearly 50% of their media and entertainment budgets. This indicates a high monetization potential for the sector.
Future Outlook
The rapid adoption of audio content platforms, combined with AI advancements and increasing demand for regional content, positions the sector for robust growth. As platforms focus on expanding content libraries and enhancing user experiences, the industry is poised to penetrate deeper into India’s diverse markets.
With plans for IPOs and new funding rounds, audio startups like Pratilipi FM are gearing up to capitalize on this momentum. The next few years could redefine the audio entertainment landscape in India.
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