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.
This year, Spotify launched in India in February. Together with a freemium mannequin with advertisements and no offline storage, Spotify presents a premium tier at INR 119 per 30 days together with a 30-day free trial for brand new customers. The corporate claimed 1 Mn downloads within the week after launch.
Two weeks after Spotify, YouTube Music launched in India on March 12. Apart from a free ad-supported version, YouTube Music has a premium version for ad-free music for INR 99 per month. The company stated it has got three Mn downloads within one week of its launch.
With about 100Mn monthly active users (as of March 2019), Gaana has been leading the online music streaming charts in India.