Chinese internet behemoth Tencent Holdings has made yet another investment in India. This time, it led the $115 million round in music service app Gaana. The round also saw participation from the incubator of the company, Times Internet. Gaana plans to use the funds to invest in artificial intelligence, product development and enhance user experience. The music streaming company claims to have over 60 million active users.
Commenting on the investment in Gaana, Martin Lau, President of Tencent Holdings said, “As more affordable mobile data plans are driving smartphone penetration in India, we believe growth in the music streaming market will accelerate.”
Talking on Tencents recent investment in Gaana, Gautam Sinha, CEO of Times Internet said, “We are happy to welcome Tencent as a partner in Gaana and benefit from their global learnings. Gaana has demonstrated exponential growth over the years.” He further stated that Tencent operates the largest music streaming business in China, and that Times Internet is looking forward to using their expertise in the sector to innovate and drive the market in the country.
This is not the first investment Tencent has made in a music streaming service. Tencent holds majority of shares in Tencent Music, one of the biggest music streaming services in China. It also administers Joox, one of the famous music streaming platforms in south east Asia. Among Tencent’s recent investments in India was cab-hailing firm Ola where the company led a $1.1 billion round in October last year, with participation from Japanese conglomerate Softbank and others.
According to a recent report by Statista, the total revenue in India’s music streaming service segment is expected to be at $101 million this year 2018. It is expected to hit the market volume of $117 million by 2022, growing at a rate of 3.8 percent per year. User penetration now is at 6.6 percent, and is expected to go up to 6.7 percent in 2022. While the average revenue per user currently amounts to $1.13.