Gaana acquired by Radio Mirchi’s parent ENIL for Rs 25 lakh

Months after failed merger talks with Airtel's Wynk, India's on-demand music streaming platform Gaana has reportedly been acquired by Entertainment Network India Limited (ENIL), the parent company of Radio Mirchi, for Rs 25 lakh.

Notably, Gaana has raised over $200 million 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 listed subsidiary of media giant Times Group.

Struggle with debt

Despite raising substantial funding from its backers, Gaana struggled financially, requiring multiple debt injections from Times Internet to stay afloat.

In July 2023, Times Internet provided Gaana with Rs 100 crore in debt, which was later converted into equity.

By December 2023, the platform was consolidated with ENIL, marking the end of Gaana's independent operations. The specifics of Tencent's involvement 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 last quarter of FY24.

However, despite these efforts, ENIL’s consolidated operating revenue dropped by 25.79% quarter-on-quarter to Rs 113.46 crore, with the company recording a loss of Rs 5.45 crore in the first quarter of FY25.

Management changes and strategic shifts

Gaana also saw significant management changes during this period. Sandeep Lodha, who replaced long-time CEO Prashan Agarwal in mid-2021, resigned in July 2023.

Currently, ENIL’s CEO, Yatish Mehrishi, oversees Gaana’s operations. Amid the ongoing division of assets within the Times Group, Times Internet has been divesting from several of its portfolio companies over the past three years, including Dineout, ETMoney, MX TakaTak, MensXP, iDiva, and Hypp.