Tencent in Talks to Invest in Indian Audiobook Platform Pocket FM

Tencent Nears Leading Investment in Pocket FM

Tencent is reportedly nearing a deal to spearhead a new investment round for Pocket FM, a company based in Gurgaon, India. This move signifies a continued effort by the Chinese technology conglomerate to expand its presence within India’s consumer internet sector.

Details of the Proposed Investment

According to sources familiar with the negotiations, Tencent, which already holds a stake in Pocket FM, is considering leading a funding round valued at approximately $20-25 million.

The potential valuation of the three-year-old startup is estimated to be between $75 million and $100 million. Current investors, including Times Internet’s Brand Capital and Lightspeed, are also expected to participate in this financing round.

It’s important to note that the investment has not been finalized, and the specific terms are subject to change. Both Tencent and Pocket FM have refrained from providing official comments.

Pocket FM’s Business Model

Pocket FM operates a mobile application offering a diverse selection of podcasts and audiobooks. Content is available in both English and multiple Indian languages.

The platform boasts a catalog exceeding 10,000 hours of audio content, developed in collaboration with numerous content creators.

Users can access Pocket FM through a freemium model, offering both a paid subscription service and an ad-supported free version.

Growing Audio Market in India

This potential investment occurs amidst a surge in Indian startups entering or expanding within the audio content space. For example, ShareChat, an Indian social networking platform, recently introduced a feature similar to Clubhouse.

Tencent’s Broader Indian Strategy

Pocket FM represents Tencent’s latest strategic investment in India’s consumer internet landscape. The company already has significant holdings in Gaana, a music streaming service, and MX Player, a video streaming platform.

Following regulatory changes in New Delhi last year – requiring Chinese firms to obtain approval before investing in Indian companies – Tencent temporarily moderated its investment activity in India.

However, the company has recently resumed investment, primarily utilizing debt instruments with convertible notes rather than direct equity investments.