Pocket Aces aspires to become a digital media conglomerate

“More than just a producer, we want to be a digital media conglomerate.” 

It is this thought that has driven Pocket Aces to become a Rs 104 crore digital entertainment startup in 10 years. Starting with one YouTube channel, it has now grown to four and beyond content creation to gaming and talent management. It is now set out to foray into film production and regional content.

In an interview with afaqs!, Aditi Shrivastava, co-founder and CEO, Pocket Aces, speaks about the company's journey so far and its future plans.

Founded in December 2013 by Ashwin Suresh and Anirudh Pandita, it initially set out to be a film studio. However, seeing the rise in digital viewership it soon pivoted to creating content for the youth. Shrivastava joined them in 2016 to lead its revenue division. Starting with short-form content, the company gradually expanded to long-form content and eventually ventured into OTT platforms. 

All the three founders came in with different motivations. Suresh approached it from a purist content perspective, aiming to craft exceptional content with widespread appeal in India and globally. Pandita, with a more business-oriented mindset, aspired to build a billion-dollar enterprise. Meanwhile, Shrivastava was drawn in by the belief that as a media company catering to youth, it would wield significant influence. “Creating progressive content presented an opportunity to positively impact millions,” she says.

For the three engineers-turned-investment bankers, media was a new world. Though Suresh had some media experience, due to his stint at Reliance Entertainment and Junglee Pictures, it was the first time they were building together a media company from scratch. Shrivastava says being ‘outsiders’ helped them immensely. 

“It gave us a fresh perspective unburdened by preconceived notions or established norms. This lack of baggage allowed us to think innovatively, challenging conventional practices and contemplating improvements,” she says.

The three built their expertise on the go, assembling a young team straight out of college. Together, they navigated the nuances of content creation, studying and adapting content models from the West for short form and web series, and learnt ‘the rules of virality’. 

“Drawing from our experiences in other industries, we introduced operational best practices to Pocket Aces. This differentiation, especially for a young media company, encompassed establishing growth paths for creative talent, defining organisational structures, and implementing a robust cashless operational model. These operational foundations strengthened our business fundamentally, both in terms of operations and financials,” she says.

Pocket Aces’ growth has coincided with the boom of digital content over the last decade. It has closely watched and been impacted by the major milestones of the decade- the launch of Jio, the entry of video streaming and the pandemic-induced lockdowns. These events proved an impetus for the company’s growth. 

With a mission to make high-quality content for people “like us”, in 2015 it launched Dice Media and FilterCopy on YouTube. Dice Media’s first-ever content piece ‘Ban Ban’ was a hilarious take on India’s political scenario. Meanwhile, FilterCopy created a spoof of news channels with “News Darshan”. Over the years, it launched two more YouTube channels- Gobble and Nutshell. Gobble creates non-fiction lifestyle shows and Nutshell offers infotainment. Beyond content creation, it forayed into gaming by acquiring Loco in 2018 and into talent management by launching CLOUT in 2020. 

Shrivastava says the company’s resilience is a result of these diversified offerings. 

“Even during fluctuations in specific sectors, our overall business has thrived. This strategy, though challenging, aligns with the model of successful large media companies globally. We want to emulate that. The constant evolution within our company reflects our commitment to staying ahead in a dynamic media landscape,” she says. 

Known for creating shows largely in the ‘dramedy genre’, like Little Things, What The Folks, Adulting and Operation MBBS, the company now plans to expand beyond it into other genres like horror, thriller and drama. It also plans to foray into regional content soon.

“While retaining our USP of young adult-oriented dramedy, we are expanding into different genres within the 20 to 35 age group. This evolution aims to enrich the content landscape while ensuring our core audience remains engaged. Our focus remains on creating content that aligns with the aspirations and growth trajectories of young people,” she says.

Acquisition

The music label Saregama's 51% acquisition in September 2023 for Rs 174 crore has further invigorated its business. It will soon receive a second tranche to acquire another 41% in the company. For Pocket Aces, the legacy company brings with it deep industry knowledge that enhances its planning and analysis for the future. 

“Even post-acquisition we are operating independently. They trust our understanding of the youth audience, allowing us autonomy in that space. We've unlocked compelling synergies and we're closely collaborating on products. The strategic partners help us with our goal of building a large and profitable company,” she says.

Shrivastava says the company considered mergers and acquisitions (M&A) as a means to ensure longevity.

“While we never precisely mapped out our future in terms of years, our collective vision focused on leaving a lasting legacy beyond our involvement. This naturally led us to consider M&A as a means to create something enduring,” she mentions.

Advertising

Leveraging their financial background, the founders prioritised delivering measurable returns on investment (ROI) for advertisers. “Our focus on ROI encompassed metrics like views, engagement, website traffic, app downloads, and brand recall. We were pioneers in initiating brand lift studies, demonstrating our commitment to delivering tangible value to advertisers,” she says. 

Pocket Aces creates content for its audience in the age group of 20 to 30 years. Though 55% of its viewers come from tier 2 and 3 markets, the brand remains associated with urban and progressive content. Their shows are a popular choice among advertisers for branded content. 

“Among digital platforms, we were pioneers in embracing branded content. But we were clear that we'd only create videos or series for brands aligning with our audience's preferences. Our approach ensures no trade-off in our core product,” she says.

In the initial days, when there were only a handful of players like AIB, TVF, and Pocket Aces, convincing advertisers to shift budgets from TV to digital was challenging. 

“Securing conversions from major advertisers like Tata, HUL, and P&G was a gradual process due to the multitude of options available to them. It took us time to establish ourselves as a reliable content creator, but we did it with consistent performance and organic virality,” she says. 

However, a faster and more straightforward path emerged through their network of VC-funded founders. Leveraging connections with these startups proved efficient. Its initial clients included Swiggy, OYO, Velvet Case, Tinder, Unacademy, Epigamia, Furlenco, and Pepperfry. 

“Younger companies, being digitally-oriented and often led by founders who inherently understand the digital landscape, were quick to appreciate the value of our content. Additionally, these startups were more receptive to digital advertising, as their budgets were not yet allocated to traditional channels like TV or IPL,” she says. 

However, Shrivastava says the current abundance of platforms and avenues has made it more accessible to divert ad spend towards digital content. It gradually expanded its client base to encompass major FMCG companies and their agencies. Now its largest billings come from the likes of L'Oreal, Mondelez, P&G, and HUL.