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Beta
Sector: Entertainment - Music Streaming Region: Asia, Africa, UK Domicile: UK

Team

Chairman:
Scott Cohen
CEO: Martin Rigby
COO: Ed Hynes

Psonar

Company Overview

Psonar is a mobile music streaming business which uses a pay-as-you-go (PAYG) service charging model. Its app it enables users to stream music to their mobile devices without subscription.

Unlike most other non-subscription services, users of the Psonar app can stream music without the intrusion of advertising.

Market Opportunity

There are an estimated 1.6 billion mobile phone users in Emerging Markets who cannot afford or are not willing to pay monthly premium subscription fees to services such as Apple Music or Spotify.

However there is a high demand for streamed local and international music.

The majority of these users do not have credit cards or bank accounts, which are often required to access these services.

Market Strategy

Psonar offers users a convenient and affordable way to access and pay for the music.

Its music catalogue not only consists of a large international library and additional access to over 6 million songs, but also a rich library of local content. In Q4 2015, Psonar entered the Malaysian market through a strategic partnership with Digi, one of the country’s largest mobile operators, with over 12 million customers. Psonar has agreements in place with two mobile groups covering many South and South East Asian countries, including Thailand, Indonesia, Myanmar, Pakistan, Bangladesh, India and Sri Lanka.

PSonar

Investment Highlights

Business Model: Having proven the model in the Malaysian market, Psonar is now stepping-up expansion into other markets
Extending relationships with mobile operators: It is leveraging its relationship with two of the largest mobile operators in South East Asia, and entering new territories served by their operating subsidiaries. These channel partnerships offer Psonar is gaining access to tens of millions of potential customers. In addition, for Myanmar, Psonar is currently at the technical integration stage with one of the top three instant messaging platforms in the territory
Wide music distribution: Distribution agreements for both local content and international music libraries gives Psonar product differentiation over mainstream subscription streaming services which have limited local content in many markets
Pay-as-you-go model: Its disruptive PAYG model targets the majority of mobile users in these regions who are poorly served by traditional subscription services that are too expensive and do not match their habitual purchasing behaviour

This is a pay-as-you-go music streaming service targeting the 1.6bn mobile users in Emerging Markets. This suits most of these users as they typically don’t want or can’t afford subscription services.

Follow This Deal

EIS:

Yes (previous rounds). To be applied for in Q1 2017


Debt/Equity:

Equity


Amount:

£2,500,000


Anchor investor:

London Co-Investment Fund, Angels


Expected timing:

Q1 2017

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www.psonar.com

Financial forecast are provided by the Directors of the company and cannot be relied on or guaranteed

Company information has been provided by the company itself and not independently verified by Movement Capital