A few years ago, Gaana was India’s number one music streaming platform—boasting over 15 crore users, millions of songs, and a valuation nearing ₹5,000 crore. But in just a few years, this empire crumbled completely. By 2023, a company once valued at thousands of crores was sold for merely ₹25 lakh. The question is—how did such a colossal fall happen? What mistakes turned this music giant into a shadow of its former self? Let’s dive into this shocking story.
Back in 2010, smartphones were gradually making their way into the hands of everyday Indians, and the arrival of 3G internet had opened the doors to a digital revolution. People were no longer just making calls—they were watching videos, listening to music, and doing everything online. But there was a major problem: there was no easy, legal way to listen to music.
People either searched for songs on YouTube, where they had to watch videos just to hear the audio, or resorted to pirated websites, facing poor sound quality, buffering issues, and legal risks.
At that time, two music lovers working at Times Internet Limited—Avinash Mudaliar and Jait Haride—were frustrated with the same problem. They thought, “If only there was a platform where we could listen to music easily and legally.” When they explored the market, they realized this was not just their problem; millions of people were facing it.
Seeing this gap, the duo decided to create a music platform where songs could be accessed legally, in high quality, across multiple languages, and tailored for Indian listeners. But while the idea sounded simple, executing it was anything but.
Avinash and Jait knew that building a legal music platform meant acquiring licensing rights for thousands of songs—a costly and complicated process they couldn’t fund themselves. So, they pitched the idea to Times Internet’s senior management. Amazingly, the concept was immediately approved. The company believed that with proper execution, it could become India’s biggest music platform.
With technical and financial support, the platform took shape, and in April 2010, Gaana was launched. For the first time in India, music became legal, easy, and accessible. Users loved it. Hindi, English, Punjabi, Tamil, Telugu—Gaana offered thousands of songs across languages, along with curated playlists for every mood—sad, romantic, workout, you name it. Personalized recommendations made users feel as if the platform understood their mood. By November 2012, Gaana was attracting around 30 lakh monthly visitors, showing its rapid growth and solidifying its place in the hearts of millions.
As smartphones spread, Times Internet anticipated the shift from web to mobile. In 2013, Gaana launched apps for Android, iOS, BlackBerry, and even older J2ME phones, becoming an early mover in India’s music streaming revolution.
Competition soon arrived—Airtel launched Wynk Music in September 2014, and Micromax later pre-installed Gaana on its low-cost smartphones. Initially, Gaana weathered the storm due to trust, popularity, and continuous innovation.
Then came Reliance Jio in 2016, transforming the digital landscape. Millions of Indians gained access to fast, cheap internet, boosting online content consumption, including Gaana. But the game-changer came in 2017, when Jio launched its own music platform, JioSaavn, bundled with free data. Users slowly began shifting from Gaana to JioSaavn.
Gaana tried to fight back. In 2017, it launched Gaana Originals, producing exclusive non-film songs, and Gaana Plus, a subscription-based ad-free model offering offline downloads and high-quality audio. Yet, competition continued to grow. Amazon Prime Music entered India in 2018, followed by Spotify in 2019, and YouTube Music also launched that year. Despite being India’s largest music app in 2020, Gaana faced mounting pressure.
Financially, Gaana earned ₹120 crore in 2020, but for every ₹1 it made, it spent ₹4.20—total expenses exceeded ₹500 crore. Net profit ratios dropped to -28%, creating an urgent need for funding. A Chinese investor, TST, had invested heavily earlier, but government restrictions on Chinese investments left Gaana struggling for capital.
The pandemic further worsened the situation. Ad revenues plummeted as brands struggled, while free users increased and paid subscribers declined. Operational costs—server maintenance, royalties, salaries—remained high, forcing layoffs and service cuts. By September 2022, Gaana shut down its free streaming service without warning. Subscribers reacted by uninstalling the app and shifting to competitors.
Investors lost confidence. By 2022, losses had reached ₹316 crore. Airtel eventually bought Gaana, merging it with Wynk Music for a mere ₹2.5 million—just 2.5% of its 2021 valuation of $580 million. Gaana’s once-commanding market position had collapsed.
ENIL, the new owner, doubled subscription fees, causing more users to leave. Now, Gaana focuses on premium experiences, partnering with Mahindra to pre-install the app in electric SUVs with high-quality 3D audio, and plans to rebrand as Mirchi Plus, combining radio shows, podcasts, and entertainment content.
Gaana has shifted from mass-market dominance to premium, exclusive experiences. The question remains: can this strategy restore its former glory?
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