Saavn raises $100 mn; to move into video

MUMBAI: Move over hotstar.com. Competition is coming your way. Earlier, this year, the Neeraj Roy led music streamer Hungama.com raised around $100 million to expand its service into video delivery to its subscribers. Then Hooq.com announced its foray into the over the top (OTT) market. Now it’s the turn of New York headquartered Saavn to announce that it is going to move into delivering video content to its subscribers. The company late last night confirmed that it had managed to raise $100 million in a Series C round led by Tiger Global.


Among investors who also took part in the round figure: existing investors Bertelsmann India Investments, Steadview Capital, Liberty Media, and Mousse Partners, and new ones such as Qulvest, hedge funds from Hong Kong and a number of strategic individuals. Avendus Capital in Mumbai and LionTree Advisors advised on the deal. The $100 million fund raise values Saavn.com which started in 2007 at $300-400 million.


Saavn CEO Rishi Malhotra revealed that the service is adding a million monthly average users (MAU), with a total of around 14 million MAU currently and hopes to cross 20 million MAUs by end this year.


The company is banking on the mobile users to take up its music and video streaming service in a bigger way.  Malhotra told techcrunch.com that almost 90 per cent of its subscribers are on mobile and have been averse to paying and hence Saavn has been focusing on an ad-supported model for its music streaming service so far.


A part of the $100 million it raised will be used to scale up its music streaming service which has a catalogue of 2 million plus songs, mostly from Bollywood. It wants to expand its sales force.


“The real purpose of this raise is to continue developing our product, acquiring a larger user base, and investing in the right components that make a healthy media company,” Malhotra told techcrunch.


“We want to become an entertainment ecosystem for mobile,” he continued. “That means new audio products and also video, absolutely. The exciting thing about the [Indian] market that we can be part Spotify, part Pandora, and part Netflix.”


The company has signed on Bollywood heart throb Ranbir Kapoor to promote Saavn in prime time commercials on mainline Hindi general entertainment channels in India.


Latest Reads

IoT is risk to networks; Netflix, PayPal, Twitter and Amazon temporarily shut in cyber attack

MUMBAI: Nobody is safe until everybody is safe, it is said. The most hyped and happening currency in the world of communication as well as the best weaponry in the wireless world -- the Internet -- was under attack. Cyber attackers can DDoS (Distributed denial of service) for a range of purposes,...

iWorld e-commerce
Interconnect tussle: Vodafone, Airtel, Idea may move court against proposed Rs 3,000-cr penalty

MUMBAI: The Telecom Regulatory Authority of India (TRAI) plans to impose a heavy penalty on three major telecom operators for failing to provide adequate interconnectivity to RJio even as operators attempted to comply with the rules. Jio had written to the TRAI seeking action against incumbent...

iWorld Telecom
How broadcasters can use Facebook better?

MUMBAI: Facebook’s daily active user base in India clocked a whopping 22 per cent growth rate by the second quarter of 2016, which is much higher than the 17 per cent growth rate the social media giant enjoys globally. Naturally, addressing its India-only usage and the issues concerning it is of...

iWorld Social Media
How to make your content viral?

MUMBAI: How often do we hear the term ‘viral’? From the germination of an idea to its execution, the only target people want to achieve is making it go viral. Be it a concept or a new initiative, grabbing the maximum number of eyeballs or reaching out to the masses remains the crucial part.

iWorld Social Media
Culture Machine launches digital channel Om Bhajan Bhakti

Culture Machine has launched its new digital brand on devotion and spirituality, titled "Om Bhajan Bhakti". The channel explores the spiritual and devotional space by providing unique experiences and learning to viewers.

iWorld Video On Demand
Welcome offer lands Reliance Jio in 4G speed soup

Even as Reliance Retail today launched 4G F1, the first device under the LYF brand outside the four elements branding, Reliance Jio seems to have received a setback with TRAI declaring its speed to be the poorest among five telecom operators. LYF F1 has been launched with advanced 4G for Reliance...

iWorld Telecom
Vodafone India announces roaming free from Diwali

Vodafone India, one of India’s leading telecom service providers, has announced free incoming calls while roaming nationally for all its customers. Starting this Diwali, all Vodafone India customers, travelling anywhere in the country, can continue to talk worry free without having to cut short...

iWorld Telecom
Facebook updates architecture for India's next billion coming online

GURGAON:  "We (Facebook) are now launching a new architecture so you can see less grey boxes, and more relevant stories quickly, regardless of your network connection. This new architecture of News Feed allows stories to be ranked on the client after being sent from the server. We avoid spinners...

iWorld Social Media
Q2-17: Reliance: Jio busts records, organised retail grows 63 percent

The Mukesh D Ambani led Reliance Industries Limited (RIL) organized retail segment - Reliance Retail, continued its growth momentum and profitability in the quarter ended 30 September 2016 (Q2-17, current quarter), while its digital services offering Jio has broken all records in terms of...

iWorld Telecom

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories