Spotify, the popular streaming music service, has retained Goldman Sachs to raise $500 million (roughly Rs. 3,089 crores) in private investment, a move that would probably delay the possibility of an initial public stock offering in the near future.
As a result of this latest round of investment, Spotify's valuation would increase to at least $6 billion (roughly Rs. 37,078 crores), and possibly $7 billion (roughly Rs. 43,258 crores) or more, according to a person briefed on the company's plans, who spoke on the condition of anonymity. In its last fundraising round, in late 2013, it took in $250 million (roughly Rs. 1,544 crores) and was valued at more than $4 billion (roughly Rs. 24,719 crores).
News of Spotify's latest round of financing was first reported Thursday by The Wall Street Journal. A Spotify spokesman declined to comment. Spotify, which started in Sweden in 2008 and is now available in 58 countries, is the leading provider of streaming music by subscription.
It offers millions of songs in two versions: free with advertising, and an all-access paid version that in most countries costs about $10 a month. Spotify says it has 60 million users around the world, 15 million of whom pay. On Wednesday, it scored a coup in the digital music market when Sony said it would soon shut Music Unlimited, its failed streaming outlet, and replace it with Spotify.
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