News Column

Music Streaming Site Saavn Plans Fresh Fund Raise

August 3, 2014

Tiger Global backed music streaming site Saavn is planning to raise close to $30-40 Mn (c.INR 1,800-2,400 Mn)in a round likely to be led by Hong Kong based India focused hedge fund Steadview Capital.

Saavn, founded in 2006 by Vinodh Bhat had raised $16 Mn from @TigerGlobal LLC and angel investors.

The New York headquartered Saavn LLC claims to have a catalogue of 1.1 million songs and had recently tied up with T Series to adding it to its branded labels list which includes Sony, Tips, Yash Raj, Universal, Warner, and EMI.

It had also launched Saavn Pro which brings offline, ad-free listening to its users.

The site earns its topline from advertisements on its free services and advertisement-free subscription.

Last year it had partnered with media engagement company, Shazam to enable its users to discover the latest tracks from their favorite South Asian artists in Bollywood and beyond, with popular genres such as bhangra, devotional, ghazals, Carnatic, Indipop, and more; and music in regional languages including Hindi, Punjabi, Tamil, Telugu, Gujarati, Marathi, Bengali, Kannada, and Bhojpuri.

The digital music market is expected to grow to $9 Bn (INR 540 Bn) worldwide in 2014. Indian music streaming industry is facing tough challenges like piracy, fees of big music labels, etc. Last year Flipkart shut down Flyte, its digital music store, citing piracy and complex payment mechanisms. Also Nokia shut down its online music store in India in September.

Recent deals in this space:

San Francisco based digital services company Rdio had acquired Pune based music streaming site Dhingana for an undisclosed amount.

Online music streaming portal owned by Times Internet had acquired independent songs portal backed by TLabs,

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: DealCurry (India)

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