Music streaming company Saavn has closed a USD 100 million (about Rs 634 crore) funding round, led by Tiger Global Management.
The fresh capital will be used to drive long-term product development and aggressive customer acquisition, Saavn said in a statement.
In addition, the company is investing in its proprietary ad technology, growing the sales force, and inking new content deals, it added.
“Music streaming is at the centre of the music industry, and India is one of the most important music economies in the world. With two million Androids shipping each week, music is driving data consumption and redefining mobile advertising,” Saavn CEO and co-founder Rishi Malhotra told PTI.
Saavn is excited to add millions of users and deliver its long-term product vision across multiple platforms, he added.
Apart from Tiger Global Management, existing investors Bertelsmann India Investments, Steadview Capital, Liberty Media, and Mousse Partners have also participated in Saavn’s Series C round.
It has added new global investors Quilvest, additional Hong Kong-based hedge funds and a number of strategic individuals in this round, Malhotra said.
Avendus Capital and LionTree Advisors were the advisors for this round.
So far, the company has raised about USD 10 million in two rounds of funding. It did not disclose the details of the previous rounds.
Saavn has seen strong growth in monthly active users with addition of over one million users a month, he said.
From 11 million users in January-March 2015 quarter, the company has seen its monthly active user base to 14 million and is aiming to cross 20 million by the end of the year.
Saavn has also released a major update to its Android product, with an iOS update to follow in the coming weeks.
The company is also working with teams at Microsoft to launch Saavn on Windows in August 2015.
The new update includes a personalised multi-language homescreen (supporting 11 languages), ‘one-click play’ on homescreen and enhanced music tagging and music chat features for Saavn Social among others.
According to a report by Deloitte India, digital music industry in the country is expected to cross Rs 3,100 crore in revenue by 2020, while the number of online music listeners in India is expected to reach 273 million.