JMD Telefilms has acquired Bajaao.com, and online retailer of music gear, for Rs. 5 crore (approximately $1.1 million). JMD, which owns the ‘Jai Mata Di’ devotional music brand, and media services business, intends to invest Rs. 25 crore in the unit.

Mumbai headquartered Bajaao.com was founded in 2005. It claims to offer buyers a selection of over 5000 music related gear, including guitars, basses, keyboards, amps, recording mixing and lighting gear. There’s no indication of how Bajaao was doing, in terms of transactions and profit, but keep in mind that typically it deals in high value goods. Bajaao does home delivery from a centralized warehouse.

JMD also plans to expand Bajaao’s operations to importing and distribution of audio equipment products and accessories in India, and expects the acquisition to help grow its revenue by 30% in the fiscal year 2011-12.

This acquisition comes after JMD acquired middle east based web development firm Trading Gate for around $2.6 million.

In addition, JMD has set aside Rs. 30 crore (around $6.5 million) for acquisitions in Mobile Value Added Services segment, since it already owns devotional and regional music content.

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It is planning (pdf) to launch its mobile learning solutions, VAS for rural consumers, and mobile applications, as well as offer exclusive 3G content and services.