Saavn raises a whopping Rs 635 Crores in fundraising drive. Music to its ears

Online Music-streaming company Saavn has raised $100 million (Rs 635 Crores) from Tiger Global Management and few others. This comes in at a time when it is preparing to launch a video service.

The company was valued at $300-400 million. New investors like Quilvest which manage some of the world's richest families also participated in the funding drive.

"We will be investing very heavily in our product roadmap, user acquisition and launching new services like video", Rishi Malhotra, co-founder and CEO said.

The current funds would enable Saavn to compete with domestic music streaming providers like Hungama and Gaana. Apple Music arrived in India last week with the launch of its new streaming service in 100 countries.

"Saavn continues to innovate consumer products designed for India's growing mobile user base," Tiger Global partner Lee Fixel said in a statement.

The size of India's music industry is pegged at Rs 980 Crores. It is expected to grow at a compound annual growth rate of 14% from 2014 to 2019, with digital channel or digital music accounting for a 55% share.

Saavn has said it is adding 1 million active users every month, and has increased its user base to 14 million from 11 million in March. The company expects to cross 20 million active users a month by the end this year. Rivals Hungama and Gaana have 50 million and 12 million users respectively.

(Image credit: Indiatimes)