The Conglomerate of China, Tencent has a lead of $115 million round funding into Gaana, a music streaming service. It’s continuing to pace up the investments in India after creating a backup of domestic giants – Ola and Flipkart last year.
In Tencent Music Entertainment, Tencent holds the majority share and became China’s largest business of Music entertainment. It also operates South Asia’s leading music entertaining platform, JOOX. Further, it stake counts in Spotify, Sweden – a leading service of music streaming.
Gaana presently has more than 60 million active users monthly and is in competition with Apple Music, Amazon Prime Music, and Saavn. Gaana now will use these funds in developing technology and particularly focuses on artificial intelligence. This will help the consumers to experience the music in a better way.
Tencent Shareholders & Gaana’s Plan
Times Internet has incubated the company seven years back. “Music streaming is the future of music consumption globally. In India, we are only 10% of the way towards building a business use for 500 million Indians,” said Prashan Agarwal, chief executive of Gaana.
Gaana has an aim to make 20 million active users in three years. Moreover, the company’s investments include Gaana Originals – non-film music launch with playouts counting more than 100 million.
However, the music app had been crossed 60 million users in January while Saavn recorded 22 million users. Next, to these two, Wynk, Hungama, and SoundCloud have held their positions.
The digital music industry of India could reach Rs.3,100 crore by the 2020 noting 273 million listeners, according to earlier year’s Deloitte report. “We see a number of businesses within Times Internet reaching a level of maturity where they will be most successful with strong, independent management, and ample access to growth capital,” said Satyan Gajwani, vice-chairman of Times Internet. “Tencent is a strategic partner for us. With deep expertise in digital music, it will benefit Gaana. We will be very happy to see Gaana continue to grow and potentially (do an) IPO in a few years.”
Tencent, the WeChat owner, planning to invest in India further. Previously, Tencent had invested in Flipkart and then Ola. Almost, it had invested $1.3 billion in India alone. “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,” said Gautam Sinha, CEO of Times Internet.