Reliance to Acquire Saavn, Sehat Kahani Raises Money

Uber has agreed to sell its Southeast Asia operations to Grab for a 27.5% share in the latter. Dara Khosrowshahi, Uber CEO, will join Grab’s board. I don’t have anything to add to my original analysis.

Reliance to Acquire Saavn

I wrote in Spotify’s launch in India last week:

Spotify will join Gaana, Saavn, Hungama, Apple Music, Google Play Music and Amazon Music among others.

Two notable names in the missing subtext of “among others” were Airtel’s Wynk and Reliance’s Jio Music. By virtue of being over the top services on two of the biggest telecom operators in the country, Wynk and Jio Music has a significant market share. From The Ken (paywall):

But executives closely involved in several music streaming companies maintain that these numbers are often inflated and that as a thumb rule, the actual base typically is half of what is reported. App Annie data accessed by The Ken for January 2018 revealed that Airtel’s Wynk had 21 million active users, followed by Jio Music at 18 million. Gaana and Saavn, the data showed, had 17 million and 15 million active users, respectively.

While Gaana and Saavn lead in the total number of subscribers. Their active subscriber bases are lesser to those of Wynk and Jio Music. These numbers were particularly troublesome for Saavn—Gaana recently got backing from Tencent. From the same The Ken article:

A decade later, the situation couldn’t be any more different. Gaana is funded by Tencent, while Saavn, as per executives in India’s music streaming circles, is battling for survival and seeking fresh investment. Saavn, according to multiple people aware of the situation, is currently in the market for a fresh funding round of $50 million at a valuation of around $200 million. Saavn’s monthly revenue, sources say, is around $1 million, largely coming from its overseas subscription offering.

The report was spot on. This week from ET Tech:

Reliance Industries has signed a pact to buy out Saavn music app for $104 million in cash and rest in stock, to merge it with its own digital music service JioMusic, valuing the combined music platform at about $1 billion.

This feels like a sad end. Saavn was the torchbearer of India’s music streaming industry.

Sehat Kahani Raises Money

From Dawn:

Founded in 2017, the startup recently raised $500,000 in seed funding from multiple sources and plans to expand its operations in the coming months.

What Sehat Kahani is trying to do is to create an all female provider network that connects home based female doctors to patients in under-served areas where health is still a dream, through quality tech-enabled solutions.

I could not be more fond of what Sehat Kahani is trying to do here. From Craigslist, Telemedicine and Healthcare Startups last year:

While I am skeptical that Craigslist model will ever work, I think telemedicine can. The problem, however, is it’s an inferior product being offered to an over-served market. Private banks, hospitals, schools, no matter what you think of them. They are over-serving the urban population of Pakistan. So either you need a product that’s 10x better than what they are offering and charge a premium. Or you need to find customers that are being neglected by these incumbents i.e. people living in rural areas of Pakistan.

The latter makes a lot of sense for these startups to consider. First, it solves the last mile problem of healthcare. Hospitals have no reach to the rural demographic. And presumably, they are not interested as well. Which makes these areas an ideal market for a startup to tackle. Second, by serving these under-served customers you can slowly build a product that catches up to what’s being offered by big-name hospitals.