Gaana to raise $115 million to strengthen its technology

Gaana, one of India’s largest digital music services, is raising USD 115 million from Tencent and Times Internet in its latest round of financing.

In December 2017, the music-streaming platform has crossed over 60 million monthly active users (according to a media statement). Gaana was incubated 7 years ago by Times Internet. In the last 4 years, its mobile app has been the driver of growth, with “700 per cent” growth in consumption in the last 2 years. 88 per cent of Gaana’s monthly users are from India.

Tencent is the majority shareholder of Tencent Music Entertainment, China’s largest music streaming business. It also operates JOOX, a leading music streaming platform in South East Asia.

The platform intends to use the capital to further invest into technology and develop AI solutions to personalise music experiences for each consumer. It also has the intentions to further develop its subscription product for paying users.

Gautam Sinha, CEO Times Internet, says in a media statement, “We are happy to welcome Tencent as a partner in Gaana and benefit from their global learnings. Gaana has demonstrated exponential growth over the years. Tencent operates the largest music streaming business in China, and we look forward to working closely with them to continue to innovate and drive the digital music market in India."

Prashan Agarwal, CEO Gaana, adds, "Music streaming is the future of music consumption globally, and in India, we’re only 10 per cent of the way towards building a business useful for 500 million Indians. Tencent will be a great partner to help us enable India to access and enjoy unlimited music at their fingertips."

“Gaana is a leading music streaming platform in India, where millions of users stay tuned to its rich music library including its exclusive Bollywood content,” says Martin Lau, president of Tencent Holdings. “As more affordable mobile data plans are driving smartphone penetration in India, we believe growth in the music streaming market will accelerate. By investing in and collaborating with Gaana, we look forward to bringing more innovation and better experiences to all Indian music lovers,” he adds.