Times Group Subsidiary ENIL Acquires Gaana For Rs 25 Lakh
Summary
The deal managed to evade media attention for quite some time.It is important to note that Gaana was bought for Rs 25 lakh as disclosed by ENIL in its filing to the National Stock Exchange (NSE). Yatish Mehrishi, the CEO of the ENIL revealed that the company spent Rs 15 crore in Q1 FY25.Since investments from the neighbouring companies in india are not allowed, Gaana raised two successive debt rounds of $90 million from september 2020 to june 2021, led by Tencent.Further, there has been a decline in Gaanas market dominance as the scale of the company shrunk by over 80% to only Rs 12.5 crore during FY24, Mehrishi shared in aninvestors meeting in May.After the acquisition, ENIL put Gaana behind a paywall and hiked the subscription price to Rs 599. ENILs consolidated operating revenue was down 25.79% QoQ to Rs 113.46 crore and the company posted a net loss of Rs 5.45 crore in Q1 FY25.Gaana also had a leadership change with the ouster of its CEO Prashan Agarwal who had been with the company for a very long time and was replaced by Sandeep lodha in mid 2021. This was the seventh divestment since the beginning of last year.In june amazon bought assets of MX Players from Times Internet. In the same year, Times Internet exited three of its portfolio companies including MensXP, iDiva, and Hypp to e-commerce major Mensa.