Ganna is the largest subscription-based commercial music platform that was acquired by the FM radio brand Radio Mirchi. The National Stock Exchange filing mentioned that the company acquired a full stake in the startup for Rs 25 lakh. The music platform and FM radio brand have signed a share purchase agreement with the startup to complete the acquisition. The Tecent-backed startup was planning to merge with the Airtel Wynk but the agreement fell through and Ganna turned to Entertainment Network India Limited.
The music application, Ganna has secured over $200 million in funding across multiple funding rounds since its inception. Entrackr reported that the company was last valued at 50 million USD. The details of the agreements and deals are yet to be announced. Ganna is an online music application that provides over 30 million songs across multiple languages including Hindi, English, and regional songs. The cloud-based on-demand music streaming platform allows users to download songs on multiple devices. The application is available on both Android and iOS devices. This deal will benefit the startup and enable Radio Mirchi to scale its operations, easily access the songs, and strengthen its position in the on-demand music market. This deal will help the company integrate its services and workforce and increase its working capacity.
Entrackr’s data shows that Times Internet was the major stakeholder of Gaana while Tecent had around 35 percent stake until 2020. Times Internet has been helping the platform by providing funds and keeping the platform running. The music streaming platform got a debt of Rs 100 crore from Time Internet which was converted to equity shares. The deal for acquiring this music application is a part of the firm’s overall growth strategy. The company taking over Gaana also shows the goal of the company toward this market. The company plans to expand its network after acquiring this startup. The merging will help the company integrate technology and clients from both companies.
According to the regulatory filings, Time Interest plans to invest Rs 10 crore in a debt funding round of Gaana this week. This will be the second investment as the firm also invested Rs 15 crore in the first quarter of FY25. Ganna reported an 80 percent decrease in its sales to Rs 12.5 crore of revenue for the previous financial year.
Conclusion:
A cloud-based on-demand music streaming platform Gaana got acquired by the FM radio brand Radio Mirchi for Rs 25 lakh. The regulatory filing of the company mentioned that the firm was acquired. This investment will enable Radio Mirchi to scale its operations, merge its services, and strengthen its client base. This acquisition will help the company to merge the startup’s clients and workforce hence the increased working capacity. This acquisition is a part of the company’s overall growth strategy. This acquisition will help the firm reach a larger audience and strengthen its brand presence in the market. The music streaming platform has raised around $242 million across four rounds to date.
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