The funds will be used for expansion into new markets such as the Middle East, reports say
Bangalore: Online music streaming service Saavn closed a Series B round of funding for an undisclosed amount, led by Hong Kong-based India-focused hedge fund Steadview Capital. Reports on the mergers and acquisitions tracking website, Dealcurry.com, suggest the value of the deal to be around $4 million. The funds will be used for expansion into new markets such as the Middle East, add reports.
The digital music service, available in English and 10 regional languages, offers free and paid subscriptions. The free version is available on smartphones, tablets and web browsers. The paid version, called Saavn Pro, allows users to download the songs and listen to it offline without advertisements. Saavn Pro costs $3.99 per month for worldwide use, while the cheaper version, Saavn Lite, is available only in India and costs about $2 per month.
In the previous round of funding, Saavn raised about $16 million from US-based venture capital fund, Tiger Global Management Llc and a group of angel investors.
A study conducted by Mahindra Comviva and Ovum Consulting early this year said that the digital music industry in India and other emerging markets in the Asia Pacific region is expected to touch $450 million in 2014. Globally, the industry grew 9% in 2012, and is expected to be a $9 billion industry worldwide in 2014.
Saavn currently has the rights to over 1.1 million songs on its catalogue with around 8 million users on the platform every month.