Following failed merger talks with Airtel Wynk, India’s on-demand music streaming platform Gaana has been acquired by Entertainment Network India Limited (ENIL), the parent company of Radio Mirchi.
Gaana appears to have been acquired for Rs. 25 lakhs, as per ENIL’s filings with the National Stock Exchange (NSE). Although the deal took place in December 2023, it has somehow managed to bypass major media attention as of now, as reported by Entrackr.
Despite raising substantial funding from its backers, Gaana struggled financially, requiring multiple debt injections from Times Internet to stay afloat.
Data indicates that Gaana has raised over $200 million in its lifetime, and was last valued at around $580 million. However, despite this substantial funding, Gaana struggled financially and required multiple debt injections from Times Internet to stay afloat. For example, in July 2023, Times Internet provided Gaana with Rs 100 crore in debt, which was later converted into equity. In its recent regulatory filings with the Registrar of Companies (RoC), Times Internet committed to inject up to Rs 10 crore in additional debt into Gaana. ENIL’s CEO, Yatish Mehershi, has also stated that the company invested Rs 15 crore in the first quarter of FY25.
With this context, Gaana’s merger with ENIL despite this indicates that there is a lack of optimism for third-party acquisitions.
However, details about Tencent’s stake in the 14-year-old platform are still unclear, and information regarding the deal is currently limited.
