A number of former workers have claimed in the last three months that the poisonous work culture at Pocket FM is severely harming staff members. Posts regarding workers in the company’s Indian headquarters who said they were fired without sufficient notice are common on social media.
And social media complaints aren’t limited to Indian workers. During its months-long investigation, several media houses have reported that there are a number of problems at Pocket FM, including disgruntled former contractual employees in the US who have taken the company to court.
The startup is based in Bengaluru and has a parent company in the US. Even though the US accounts for almost 80% of Pocket FM Corp’s income, the company is facing a possible class action lawsuit, according to many lawsuits filed against it in the US.
According to at least 11 “independent contractors”, Pocket FM violated several US regulations and legislation pertaining to worker classification, wage provisions, and working conditions.
Contractual Trap of Pocket FM
The core of these numerous allegations is that Pocket FM has set up a contractual trap, purposefully misclassifies workers, fails to provide payroll records, minimum wages, severance compensation upon termination, and more.
In the US, a large number of applicants claim that they were fired without cause, that they were not given rest or meal breaks, and that Pocket FM retaliated against them for voicing these concerns.
In response to a media inquiry, Pocket FM denied that there were any disparities in the recruiting procedure of contractual workers in the US and stated that the accusations are unfounded. The company also stated that hiring contractual workers for short-term projects is standard procedure in the content and entertainment sector.
Employees in India have frequently complained that their contracts are terminated long in advance of a project’s completion, leaving them unemployed with little warning.
The class action lawsuit filed against Pocket FM by former contractors may have significant effects on future growth due to the company’s reliance on US income.
Beyond this, though, a bad reputation has been created among creative professionals due to claims of a hostile environment and strict deadlines for creative work. Many of these workers have taken to social media to vent their frustrations, and those who have the option to sue the corporation have done so.
Financial Outlook of Pocket FM
When Rohan Nayak, Nishanth KS, and Prateek Dixit founded Pocket FM in 2018, it was an audio entertainment platform that offered serial material in a variety of languages and genres, such as romance, drama, thriller, fantasy, and science fiction.
In the initial years, Pocket FM talked about developing a new category for audio series in India that was based on micro-transactions as a revenue model. The company’s full attention was on the Indian market during this time.
Pocket FM’s US launch was a huge success, and it might even be argued that its microtransaction method was always anticipated to perform better in the US due to the country’s greater per capita income and established podcast consumption market.
Although this could not be independently confirmed, Pocket FM said that its top line increased 68% in FY25 and that its global sales jumped 496% to INR 1,051.97 Cr in FY24.
A media report claims that as part of a reorganisation plan, audio series provider Pocket FM is laying off about 75 workers. The company has laid off employees twice in the last six months in an effort to reduce expenses and get closer to profitability.
According to reports, Pocket FM terminated contracts with 200 freelance writers earlier in July and fired off 50 staff in October 2024. According to a corporate spokesman who confirmed the recent layoffs to a media outlet, Pocket FM has made the difficult choice to let go of over 75 of our valued team members as part of the company’s drive to create a more lucrative and efficient organisation.
According to sources, since the process is still ongoing, the final number of layoffs may be greater. Despite its difficulties, the spokesperson stated that this action was required to guarantee the organisation’s long-term viability and prosperity. The layoffs follow rival Kuku FM’s reported November 2024 layoffs of roughly 100 workers. More than 200 million people have signed up for Pocket FM, and in 2024 alone, they streamed more than 100 billion minutes of material. Additionally, the business reports that users have spent an average of 115 minutes per day using the app, and that over 45 million transactions have been conducted this year.
How Pocket FM Operates?
Founded in 2018 by Rohan Nayak, Prateek Dixit, and Nishanth Srinivas, Pocket FM offers more than 75,000 audio series in a variety of genres, including fantasy, romance, and thrillers. Both English and a number of Indian languages, such as Bengali, Tamil, and Hindi, are available on the platform.
It uses a freemium business strategy, giving users 15 minutes to view each of its audio series for free before allowing them to buy coins for INR 50–100. New episodes can be unlocked with these coins.
Financial Dynamics of Pocket FM
For the fiscal year 2023–2024 (FY24), Pocket FM recorded consolidated revenue of INR 1,051.97 crore, a remarkable six-fold growth over the previous year’s revenue of INR 176.36 crore. At the same time, the company’s losses dropped from INR 208 crore in the previous fiscal year to INR 165 crore.
Subscription income from micro transactions, which increased to INR 934.73 crore in FY24 from just INR 160 crore the year before, was said to be the main driver of the revenue surge. Anurag Sharma, chief financial officer of Pocket FM, informed a media outlet that the company anticipates an 80% increase in revenue this year (FY25).
Tencent, Lightspeed, Goodwater Capital, Stepstone Group, Times Group, Tanglin Venture Partners, and South Korean internet titan Naver are among the investors in Pocket FM. When the firm raised $103 million in March, led by Lightspeed, its latest valuation was $750 million. To date, it has raised $196.5 million in funding.
With the tension escalating at the Indo-China border, the Chinese-funded companies in India are currently at risk. The people of India are now boycotting Chinese manufacturers and organizations that sell their products in India. As a result, Indian startups funded by Chinese investors are also facing severe backlash.
Among India’s top 30 companies and startups (entrepreneurial ventures worth over $1 billion), 18 have received funding from the Chinese.
Chinese investors are quick in identifying the potential in Indian startups. They find investing in India enticing because India has an attractive risk-return trade-off and remains the second-fastest growing economy in the world. Chinese investors have funded over 18 Indian unicorns; it amounts to around $3.9 billion in investment in 2019. But the growing conflict between the two countries is making it challenging for these unicorns to receive further investment capital from China.
BigBasket is an Indian online grocery delivery service. Alibaba invested in BigBasket in 2018. The investment assists BigBasket in competing with the US-based Amazon and India’s Flipkart. The company’s valuation exceeded $1 billion with the help of Chinese investment. The decision to boycott Chinese products affected BigBasket in several ways.
Dailyhunt
Chinese Investor: Alibaba
Dailyhunt – Chinese Investment In India
Dailyhunt is one of the fastest-growing startups in this list. Dailyhunt is an Indian news content aggregator. It is considered as one of the world’s top mobile applications for staying abreast of the latest happenings across the globe. With 22 million users and 30 billion page views per month, Dailyhunt has indeed cemented its status in the Indian startup ecosystem. Alibaba holds an investment in Dailyhunt.
Healofy
Chinese Investor: Ant Financial
Healofy – Chinese Investment In India
Healofy is India’s largest women-oriented social network; it helps women connect with other women. Healofy raised $1 million in seed fund from Omidyar Network in 2018. Healofy then received $8 million in fresh funding from Alibaba-backed parenting platform BabyTree Group and BAce Capital, a fund anchored by Alibaba’s Ant Financial.
Paytm Mall
Chinese Investor: Alibaba
Paytm Mall – Chinese Investment In India
Paytm launched the Paytm Mall app in Feb 2017. Paytm Mall follows a business to consumer model. It is an e-commerce platform that allows consumers to shop from 1.4 lakh registered sellers. Alibaba invested in Paytm Mall for a 40% stake but refused to fund Paytm Mall further. Paytm is one of the biggest e-commerce organizations to be featured in this list of Chinese-funded companies in India.
Paytm
Chinese Investor: Ant Financial
Paytm – Chinese Investment In India
Paytm is an Indian e-commerce payment system and financial technology organization. Paytm was valued at $10 billion in January 2018. Paytmvaluation was $16 billion in 2021. Ant Financial has become the largest shareholder in One97 Communications, the parent company of Paytm, by investing $680 million.
TicketNew
Chinese Investor: Alibaba
TicketNew – Chinese Investment In India
TicketNew is a privately owned company that provides online ticket booking services for movies, theatre plays and sports. Chinese e-commerce giant, Alibaba has reportedly provided over $30 million in funding to TicketNew and has acquired the ticket booking platform..
Vidooly
Chinese Investor: Alibaba
Vidooly – Chinese Investment In India
Vidooly is an online video analytics and marketing company. It provides video analytics tools and video marketing services. Vidooly raised over INR 15 crores from the Alibaba group.
XpressBees
Chinese Investor: Alibaba
XpressBees – Chinese Investment In India
XpressBees is an e-commerce logistics firm that offers delivery, order management, shipping, and tracking services. Founded in 2015, XpressBees secured over $35 million in funding from Alibaba in 2017. Again in 2019, the e-commerce giant invested $10 million in the logistics starteup.
Snapdeal
Chinese Investor: Alibaba
Snapdeal – Chinese Investment In India
Snapdeal is an Indian e-commerce behemoth. Snapdeal received over $500 million in funding from three of Asia’s largest tech companies: Alibaba, Foxconn, and SoftBank. Snapdeal is another e-commerce giant that made it to this list of Chinese-backed companies in India.
It is an Indian restaurant aggregator and food delivery start-up that provides information, menus, and user-reviews of restaurants. Zomato also offers food delivery options from partner restaurants. Zomato has raised over $150 million from Alibaba.
BYJU’s
Chinese Investor: Tencent
BYJU’S – Chinese Investment In India
BYJU’S is an Indian educational technology (edtech) and online tutoring firm. It is considered as the largest ed-tech company in the country as well. Tencent, one of Asia’s largest valued Chinese tech company investor, has invested in Byju. The amount invested on the ed-tech was undisclosed.
Ola
Chinese Investor: Tencent
Ola – Chinese Investment In India
Ola Cabs is an Indian ride-sharing company offering services that include peer-to-peer ridesharing, ride service hailing, taxi, and food delivery. Ola was founded by Bhavish Aggarwal and Akit Bhati. Ola raised over $1.1 billion in funding from Tencent.
Doubtnut
Chinese Investor: Tencent
Doubtnut – Chinese Investment In India
Another ed-tech company, Doubtnut is an Indian online tutoring platform. Doubtnut operates as an e-learning platform that enables users to ask questions related to Physics, Chemistry, and Math. Tencent provided over $15 million funding to Doubtnut in the year 2020..
Dream11
Chinese Investor: Tencent
Dream11 – Chinese Investment In India
Dream11 is a fantasy sports platform that allows users to play fantasy cricket, hockey, football, kabaddi, and basketball. Tencent has a $100 million investment in Dream11 in the year 2018. Dream11 has become the first Indian gaming company to enter the unicorn club.
Flipkart
Chinese Investor: Tencent
Flipkart – Chinese Investment In India
It is an Indian e-commerce company based out of Bangalore, India. Flipkart was founded in 2007 and has been one of the e-commerce giant in India by serving . Chinese investor Tencent Holdings have invested more than $300 million in Flipkart.
Niyo
Chinese Investor: Tencent
Niyo – Chinese Investment In India
Niyo is one of India’s largest and fastest-growing fintech ventures with the vision of making banking simple, smart, and transparent for everyone. Niyo got its funding from Tencent, although the amount raised were not disclosed to the public.
Gaana
Chinese Investor: Tencent
Gaana.com – Chinese Investment In India
It is the largest Indian commercial music streaming service. Gaana.com was founded in 2012. Gaana raised over $115 million from the Chinese internet giant Tencent. Again in 2020, Tencent invested $50 million and in 2021 another $40 million on the music streaming app.
Khatabook
Chinese Investor: Tencent
Khatabook – Chinese Investment In India
Khatabook is a mobile app targeted towards small shopkeepers and kirana store owners in India. Khatabook app helps them manage their books by tracking the money owed to them through the means of a digital ledger. Tencent has invested over $75 million in Khatabook app.
MX Player
Chinese Investor: Tencent
MX Player – Chinese Investment In India
MX Player is an entertainment app that offers its viewers quality, digital-first content, it is a very popular OTT service in India for giving access to many exclusive content to it audinence. MX Player gained popularity as an Indian OTT platform. Tencent has invested over $11q million in MX Player in the year 2019.
MyGate
Chinese Investor: Tencent
MyGate – Chinese Investment In India
MyGate is an India-based security and community management app for gated premises. The security management startup raised an undisclosed amount from Chinese tech company Tencent in the year 2019.
Pine Labs
Chinese Investor: Tencent
Pine Labs – Chinese Investment In India
Pine Labs is an fintech startup and an Indian merchant platform company. Pine Labs provides financing and last-mile retail transaction technology through its help your business can accept different modes of payment. Tencent has invested and undisclosed amount in Pine Labs.
Pocket FM
Chinese Investor: Tencent
Pine Labs – Chinese Investment In India
Pocket FM is a social audio platform for Indian languages where users can find great quality audio content comprising audiobooks, stories, and podcasts. Tencent invested in this entertainment app, although the amount invested was not disclosed to the public.
Practo
Chinese Investor: Tencent
Practo – Indian Companies with Chinese Investment
It develops and distributes medical information systems. Practo Technologies Private Limited offers an online software platform that provides automated appointment scheduling, billing solutions, and storage of medical records. Practo raised over $55 million from Tencent.
Swiggy
Chinese Investor: Tencent
Swiggy – Indian Companies with Chinese Investment
Swiggy is one of the most popular a food delivery company in India. Swiggy is one of the unicorn in India and in fact, it is also India’s fastest unicorn. In 2018, Tencent invested on Swiggy again in 2020, Swiggy got a good amount funding from Tenvcent. Both the times, the amount is not diclosed.
Udaan
Chinese Investor: Tencent
Udaan – Indian Companies with Chinese Investment
Udaan is a network-centric B2B trade platform designed specifically for small and medium-scale businesses in India. Udaan brings traders, wholesalers, and retailers into one place. Udaan raised funds from Tencent,the amount invested was not diclosed.
Hungama Digital Media Entertainment Pvt. Ltd
Chinese Investor: Xiaomi
Hungama Digital Media – Indian Companies with Chinese Investment
Hungama Digital Media Entertainment serves as an aggregator, developer, publisher, and distributor of Bollywood and Asian entertainment. Xiaomi made its first investment in an Indian company by pouring $25-million in Hungama Digital Media Entertainment.
Marsplay
Chinese Investor: Xiaomi
Marsplay – Indian Companies with Chinese Investment
Marsplay is an online platform that allows users to discover and share fashion and beauty tips. Marsplay Internet Private Limited, the parent company of Marsplay, raised funding from Xiaomi in 2018, although the exact amount was not disclosed.
Oye! Rickshaw
Chinese Investor: Xiaomi
Oye! Rickshaw – Indian Companies with Chinese Investment
Oye! Rickshaw is an electric rickshaw mobility platform that connects driver-partners and users. The best part is it is environment-friendly and is on a mission to make people commute without any problem. Oye Rickshaw raised an undisclosed amount of funding from Xiami in 2020.
ShareChat
Chinese Investor: Xiaomi and ShunWei Capital
ShareChat – Indian Companies with Chinese Investment
ShareChat is an Indian Social networking service, and it was incorporated on January 8, 2015. The main attraction of this app is that it support over 15 languages. ShareChat raised funds from Xiaomi and ShunWei Capital, a Chinese venture capital firm. Both the investment amount was not disclosed
ZestMoney
Chinese Investor: Xiaomi
ZestMoney – Indian Companies with Chinese Investment
ZestMoney is the largest and fastest-growing consumer lending fintech company in India. ZestMoney’s platform enables instant approval and disbursal of small-ticket loans. Xiaomi invested an undisclosed amount in ZestMoney in 2018.
OYO
Chinese Investor: Didi Chuxing
OYO – Indian Companies with Chinese Investment
OYO, the multinational hospitality chain is famous for its budget rooms and it is considered the biggest network of hotels in India. It is also spread in more than 199 cities and serves its people. In the year 2019. Didi Chuxing a transport company invested $100 million in OYO.
PolicyBazaar
Chinese Investor: Tencent
Policy Bazaar – Indian Companies with Chinese Investment
Policy Bazaar is a company that provides online life insurance and general insurance. The Indian multinational fintech company has been here for 14 years and has been serving people. Tencent invested $150 million in PolicyBazaar in the year 2019.
Delhivery
Chinese Investor: Fosun
Delhivery – Indian Companies with Chinese Investment
This Indian logistics and supply chain company’s main service is to transport parcels and provide third-party logistics for e-commerce companies. In the year, 2017 Fosun, a Cho9nese conglomerate company invested $3o million in Delhivery.
FAQs
How many Chinese companies are there in India?
There are 105 Chinese companies in India.
Is BigBasket funded by China?
BigBasket is an Indian online grocery delivery service. Alibaba invested in BigBasket in 2018. The investment assists BigBasket in competing with the US-based Amazon and India’s Flipkart. The company’s valuation exceeded $1 billion with the help of Chinese investment.
Is flipkart funded by China?
Flipkart is an Indian e-commerce company based out Bangalore, India. Chinese investors like Tencent Holdings and Steadview Capital have invested more than $300 million in Flipkart.
Is Paytm owned by China?
Paytm launched the Paytm Mall app in Feb 2017; Paytm Mall follows a business to consumer model. It is an e-commerce platform that allows consumers to shop from 1.4 lakh registered sellers. Alibaba invested in Paytm Mall for a 40% stake but refused to fund Paytm Mall further.
What are the Chinese Investment Companies in India?
Top Chinese Investment Companies in India are:
Tencent
Alibaba
Xiaomi
How many Chinese companies are listed in Indian stock market?
There are a total of 16 Chinese FPIs registered in India.
What are the top companies that received funding from Chinese company in India?
Top companies that received funding from Chinese company in India are:
