Months after failed merger talks with Airtel’s Wynk, India’s on-demand music streaming platform Gaaña It has reportedly been acquired by Entertainment Network India Limited (ENIL), the parent company of Radio Mirchi, for Rs 25 lakh.
It is worth noting that Gaana has increased More than 200 million dollars in funding from investors including Times Internet, Tencent and Micromax Informatics.
According to Entrackr’s report, Gaana was once valued at $580 million.
Entertainment Network India Limited (ENIL) is the publicly listed subsidiary of media giant Times Group.
Fight against debt
Despite raising substantial funds funds Because of its backers, Gaana ran into financial trouble and needed multiple debt injections from Times Internet to stay afloat.
In July 2023, Times Internet provided Gaana with Rs 100 crore in debtwhich later became the capital.
In December 2023, the platform merged with ENIL, marking the end of Gaana’s independent operations. Details of Tencent’s ownership and stake in the company remain unclear, the report said.
Impact on ENIL’s financial performance
Following the acquisition, ENIL made significant changes to Gaana’s operations, including placing the platform entirely behind a paywall and doubling the subscription fee to Rs 599. These changes were reflected in Gaana’s revenue, which stood at Rs 9.5 crore in the fourth quarter of FY24.
However, despite these efforts, ENIL’s consolidated operating revenue fell 25.79% QoQ to Rs 113.46 crore, with the company posting a loss of Rs 5.45 crore in Q1FY25.
Management changes and strategic changes
Gaana also saw major management changes during this period. Sandeep Lodha, who replaced veteran CEO Prashan Agarwal in mid-2021, stepped down in July 2023.
Currently, ENIL CEO Yatish Mehrishi oversees Gaana’s operations. Amid the ongoing asset split within the Times Group, Times Internet has been divesting several of its portfolio companies over the past three years, including Dineout, ETMoney, MX TakaTak, MensXP, iDiva and Hypp.
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