Gaana, a Spotify-like music streaming service company from India just raised $115 million from Chinese Tech giant Tencent in a recent round of funding. Gaana said that it would invest the capital raised in artificial intelligence to personalize its music platform and develop its paid-user subscription product.
Launched in April 2010, Gaana offers a commercial music streaming service providing both Indian and international music content. Almost the entire Indian music catalog is available to users worldwide. According to Gaana, it passed 60 million monthly active users in December.
"As more affordable mobile data plans are driving smartphone penetration in India, we believe growth in the music streaming market will accelerate." Said Martin Lau, the Chinese conglomerate's president, in a statement to explain Tencent's decision to invest in Gaana.
As one of the most valuable companies in Asia, Tencent has been investing heavily overseas recently, just like its main rival Alibaba. It has already had a stake in the Swedish start-up which is planning to go public through New York Stock Exchange.
Gaana is not the company Tencent invested in India either. Indian companies Tencent has invested in include messaging service Hike, e-commerce firm Flipkart and ride-hailing company Ola.