Chinese tech giant Tencent has invested $115 million in Indian music streaming service Gaana, in a deal that will help Gaana expand its user base and develop its services. Gaana, which was started by Times Media, aims to provide a personalized music streaming experience for its users through the use of artificial intelligence. The company also plans to enhance its paid-user service.
Tencent’s investment in Gaana marks the first external funding round for the Indian music streaming service, which faces competition from platforms such as Saavn, Hungama, and Apple Music. Gaana’s existing backer, Times Internet, is also an investor in the deal.
Tencent’s move into the Indian music streaming market comes as no surprise, given the company’s other music-related businesses and investments, including Joox in Southeast Asia and karaoke app Smule. With Tencent Music Entertainment (TME), a subsidiary of Tencent, rumored to be heading for an IPO this year, the company’s investment in Gaana is seen as a strategic move to further its presence in the digital music market.
The investment by Tencent is expected to boost Gaana’s growth as the Indian music streaming market continues to expand, driven by affordable mobile data plans and increasing smartphone penetration in the country. The partnership between Tencent, which operates the largest music streaming business in China, and Gaana is seen as an opportunity to bring innovation and improved experiences to Indian music lovers.
Gautam Sinha, CEO of Times Internet, expressed his enthusiasm for the partnership with Tencent, stating that they are looking forward to benefiting from Tencent’s global expertise. Martin Lau, President of Tencent, also emphasized the potential for growth in the Indian music streaming market and the company’s commitment to collaborating with Gaana to deliver better experiences for users.
While Tencent expands its presence in India, its arch-nemesis Alibaba has also made notable investments in the country. Some of the Indian companies backed by Tencent include chat app Hike, e-commerce platform Flipkart, ride-hailing service Ola, medical platform Practo, and education startup BYJU’s.
As Spotify continues to assess the Indian market, Tencent’s investment in Gaana highlights the increasing interest in India’s music streaming industry. While Spotify is unlikely to make a move in the near future due to its upcoming U.S. public listing in March, Tencent’s investment positions Gaana as a strong player in the Indian music streaming market.
In conclusion, Tencent’s investment in Gaana represents a significant milestone for the Indian music streaming service. With Tencent’s global expertise and resources, Gaana is well-positioned to further its growth and enhance its services for Indian music lovers. The partnership between the two companies is expected to bring innovation and better experiences to the ever-expanding Indian music streaming market.
