Guvera, which will operate under the 'freemium' model, offers a library of over 12 million tracks from local Bollywood albums and international artists via web and mobile platforms.
Users also have the option to subscribe to Guvera's on-demand service for Rs 199 per month.
A combination of the words 'free' and 'premium', 'freemium' is a business model that offers both free and premium services.
"India is a market that is truly diverse in terms of its taste for music. We plan to provide our Indian users with the best expert-curated local and international content," Guvera founder and Director of Innovation Claes Loberg said.
Guvera already has about 300,000 users in India and by the year-end, this should grow to one million, he added.
The service is currently available in over 19 countries worldwide and by the end of the year, Guvera aims to be present in 30 countries. It has 2 million users globally.
Founded in 2008, Guvera provides consumers with free and legal access music whilst giving royalties to the artists and record labels producing the content.
It has a #Play feature, which provides users with the ability to tailor a music experience based on their current mood, activity or preferences by searching using hashtags(#).
Consumers can also search and discover music as well as manage and share their own playlists. The integrated social features enable users to follow friends and celebrities on Guvera and access their playlists.
Guvera has partnered major music labels and content aggregators in India, including Sony Music, (T-Series and Speed Records), Universal, Saregama, Eros International, Times Music, Believe, Orchard, TuneCore, CDBaby and INGrooves.
The company also has a global partnership with Lenovo for the app to be pre-loaded onto its smartphones and tablets across a potential 160 markets where the Chinese tech giant operates.
"We will also bring in our branded channels where premium brands can connect with users. Brands like Nikon, Croma and Godrej have already launched their brand channels on the Guvera India platform," Loberg added.