JioSaavn Receives INR 140.35 Cr From Reliance Industries

Mumbai-based audio streaming platform JioSaavn has received INR 140.35 Cr from its parent entity Reliance Industries Limited.

In March 2018, Reliance’s Jio Music and Saavn merged to collectively  strengthen their foothold within the Indian music streaming market and their combined valuation was pegged at $1 Bn at the time of the merger. JioSaavn was stated to be a media platform of the future with global reach, cross-border original content, an independent artist market with consolidated information and one of the largest mobile advertising mediums.

Over this last year, Reliance has infused a number of tranches into JioSaavn:

  • August 2019: Reliance picked up 10,000 equity  shares at a premium of INR 1,40,353.10 worth  INR 140.35 Cr
  • June 2019: Reliance picked up 17,326 equity  shares at a premium of INR 1,40,353.10 worth INR 243.17 Cr
  • January 2019: Reliance picked up 10,107 equity shares at a premium of INR 1,40,353.10 worth INR 141.85 Cr

Presently, JioSaavn has over 100 Mn monthly active users (MAU) with viewers across 150 countries. It offers more than 50 Mn tracks in 15 regional languages which include Hindi, Tamil, Telugu, Punjabi and Gujarati amongst others.

Before the merger, Saavn had raised $100 Mn from investors such as Tiger International Administration, Liberty Media and Bertelsmann. The corporate reportedly has an estimated annual income of $9.2 Mn.

The Indian music streaming market is anticipated to hit a user penetration of 7% by 2023, from the present 6.5%, which, contemplating India’s present 1.3 Bn population could make an enormous distinction. In accordance with KPMG’s M&E report 2019, the business in India posted a stable progress of 13% throughout FY19 to achieve a dimension of INR 1631 Bn with a CAGR of 11.5% over FY15-FY19.

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