Pocket FM has reportedly laid off around 100 employees across content and product roles, accounting for nearly 10% of its workforce.
Nearly 2,000 contractual employees, including designers and writers for its US business, have reportedly been moved to Quess Corp’s payroll as part of cost-streamlining efforts.
The company is reportedly looking to raise $100–$120 million at a valuation of up to $2 billion despite concerns over losses and speculation about further layoffs.
Pocket FM Lays Off 100 Employees Amid Fundraising Revival Plans
Pocket FM has reportedly laid off around 100 employees and shifted nearly 2,000 contractual workers to Quess Corp’s payroll, even as the company pursues fresh fundraising plans and rapid AI-driven expansion
Pocket FM
Summary
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Pocket FM, an audio series platform, has reportedly laid off around 100 employees across content and product roles, accounting for nearly 10% of its workforce, The Economic Times reported, citing sources.
According to the report, the layoffs were role-specific and do not indicate a broader company-wide downsizing exercise. Sources said some employees were unable to meet the required skill criteria for their roles, leading to the job cuts.
Nearly 2,000 contractual employees have also reportedly been moved to Quess Corp’s payroll, including designers and content writers servicing the company’s US business.
Companies often transfer contractual employees to staffing firms such as Quess Corp to consolidate costs and streamline balance sheets.
Other media reports, citing sources, stated that impacted employees have accepted severance packages and are currently serving notice periods without active responsibilities.
Some employees have reportedly been given time to improve performance metrics. Reports also suggest that employee access to internal systems could be restricted by July.
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Meanwhile, speculation continues around another potential round of layoffs that could impact up to 15% of the workforce by the end of June. However, the company has not officially confirmed these reports.
Pocket FM was founded in 2018 by Rohan Nayak, Nishanth KS, and Prateek Dixit. Earlier last month, the company announced that it had reached $450 million in annual recurring revenue (ARR), driven by its AI-native storytelling system. Pocket FM currently operates in over 20 countries.
The company reported revenue of ₹1,768 crore in FY25, marking a 68% year-on-year increase. Pocket FM competes with Spotify and other emerging audio-content platforms such as Krafton-backed Kuku FM and Pratilipi.
Users can access content for free and wait for episodes to unlock over time, or purchase in-app coins for instant access to additional content. The platform also offers subscription plans that provide an all-access experience with fewer advertisements and longer listening windows for heavy users.
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According to a report by Mint, Pocket FM is also reviving plans to raise fresh capital, targeting $100–$120 million at a valuation of $1.5 billion to $2 billion.
This marks the second time in nine months that the company has explored fundraising. Its earlier attempt reportedly struggled amid investor concerns over mounting losses.