Pocket FM, an audio entertainment startup with a US holding company and operations in India, has begun talks to move its parent back to India as it explores a domestic IPO, according to a report.

Pocket FM is discussing a funding round of about US$150 million.

The company raised US$103 million in a March 2024 series D led by Lightspeed and backed by StepStone Group.

That brought funding to US$196 million and reportedly valued Pocket FM at US$750 million.

A reverse flip involves moving an overseas-domiciled startup’s holding company back to India before fundraising or a listing.

India’s 2024 company law changes allow some foreign parent companies to merge into Indian wholly owned subsidiaries without National Company Law Tribunal approval, though Reserve Bank of India and Foreign Exchange Management Act clearances are needed.

Pocket FM said in March 2024 that it had crossed US$150 million in ARR, with US$100 million from the US.

That made the US its largest market, while India remained one of its two biggest markets.

This would put Pocket FM among startups pursuing reverse flips, including Zepto and Pine Labs.

Rival Kuku FM parent Mebigo Labs has been linked in reports to early IPO planning.

🔗 Source: The Economic Times

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