The one perfect music streaming app, with massive songs catalogue and fluent UI is here. Disturbing the entire (over the top) music streaming services in India, RIL (Reliance Industries Limited), the parent company of Indian telecom operator Reliance Jio has announced a strategic integration of its digital music service JioMusic with one of India’s leading online music streaming app Saavn.

Essentially, RIL will be buying out the music streaming platform Saavn for USD 104 million in cash and rest in stock. Thus, merging its own music streaming app JioMusic with Saavn. It will combine the streaming media expertise of Saavn with the connectivity and digital ecosystem of Reliance Jio.

JioMusic gets integrated with Saavn - More Music, More Originals

The combined entity is valued at over USD 1 billion, with JioMusic’s implied valuation at USD 670 million. “The integrated business will be developed into a media platform of the future with global reach, cross-border original content, an independent artist marketplace, consolidated data and one of the largest mobile advertising mediums,” said RIL in a press release.

RIL will invest around USD 100 million in the new combined business. Out of this money, USD 20 million will be invested upfront, for growth and expansion of the platform. The company aims to expand the platform into one the largest streaming services in the world. RIL will also acquire a partial stake from the existing shareholders of Saavn for USD 104 million.

JioMusic merged with Saavn
  • RIL to buy Saavn for $104 million in cash and rest in stock.
  • RIL will hold around three-fourths of the merged business entity.
  • Combines JioMusic with Saavn.
  • RIL will invest up to USD 100 million to make the platform, largest streaming services in the world.

RIL will continue building on Saavn’s award-winning Original Programming and Artist Originals (AO). Saavn was the first in the music streaming industry to conceptualize, produce, distribute and license original music with independent artists. Its original audio content has delivered some of the top records in India and South Asia including Zack Knight and Jasmin Walia’s Bom Diggy.

Rishi Malhotra, Paramdeep Singh and Vinodh Bhat, the three co-founders of Saavn will continue in their leadership roles. The transaction is subject to customary closing conditions.

With this consolidation of JioMusic and Saavn, the competition in the India music streaming market is heating up. Amazon India recently launched its Prime Music service to India. There are also other established rivals including Apple iTunes musicGoogle Play Music and Gaana. Interestingly, one of world’s top music streaming service Spotify is looking to enter the India market.

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