Radio Mirchi’s Parent Company Acquires Gaana for ₹25 Lakh

Gaana, one of India's leading music streaming platforms, has been acquired by Entertainment Network India Limited (ENIL), the parent company of popular FM radio channel Radio Mirchi, for a paltry sum of Rs 25 lakh.

The acquisition, which appears to be a steal considering Gaana's once-mighty valuation of $580 million, has raised eyebrows and sparked intense speculation about the future of the music streaming platform. Industry experts are baffled by the deal, questioning the rationale behind such a low valuation for a platform with a significant user base.

ENIL, however, appears to have a different strategy in mind. Following the acquisition, the company has moved to put Gaana entirely behind a paywall, doubling the subscription fee to Rs 599. This drastic move has already led to a significant drop in revenue and a subsequent loss for ENIL in the last quarter.

The acquisition also comes after failed merger talks between Gaana and Airtel Wynk, suggesting that the platform might have been facing financial challenges. The rapid decline in value from a billion-dollar valuation to a mere Rs 25 lakh is a stark reminder of the fickle nature of the startup ecosystem.