Pocket FM, an Indian audio storytelling platform, has doubled its annualized revenue run rate to $500 million over the past year, thanks to a heavy reliance on artificial intelligence for content production. AI now powers 93% of Pocket FM’s overall catalog and 99% of its new content, according to co-founder and CEO Rohan Nayak.

Despite the increasing use of AI, the platform still relies on human creators for ideas and storytelling. AI head Vasu Sharma, a former Meta and Tesla scientist, explained that the startup has trained its own models for tasks such as creative writing and text-to-speech, using years of production data and engagement signals.

The move toward AI has significantly reduced content production costs, making it possible for Pocket FM to produce 2.5 million hours of AI-powered content annually, up from about 100,000 hours two years ago. The influx of content has helped the platform improve its ability to retain listeners, with a 12-month revenue retention rate rising to 76% from 44% two years ago.

Pocket FM's success has extended beyond audio, with the parent company, Pocket Entertainment, launching a microdrama app, Pocket Saga, which has reached an annualized revenue run rate of about $15 million. The company plans to enter at least two more entertainment formats over the next five years, aiming to turn successful stories into books, television, and movies through licensing deals.