Spotify raises USD 250 Mn in its latest round of funding led by Technology Crossover Ventures, a VC firm based out of the Silicon Valley. The funds would help Spotify strengthen its position in the US and also grow its business to countries outside.
It was reported earlier in the year that Spotify was looking to raise funding again to reach a valuation of USD 5.3 Bn, but the latest funding round brings Spotify to a valuation of over USD 4 Bn according to Wall Street Journal. The company had previously raised USD 100 Mn in the year 2012 in a funding round lead by Goldman Sachs; and about the same amount the year before.
In 2012, Spotify is reported to have doubled its revenue, generating around USD 585 Mn. Most of its revenue comes from its premium subscriber base of over 6 Mn, along with the revenue generated from advertisements. However, due to heavy expenditure in expansion to new markets, Spotify’s losses are also reported to have increased compared to last year.
Spotify faces competition from Pandora, Apple’s iTunes and Google Music, along with India based music platform Dhingana.
The company recently introduced features such as ‘Spotify Connect’ to allow premium users to stream Spotify content to Wi-Fi compatible speakers, along with a ‘Browse’ functionality and its new ‘Electrospective Spotify app’, to help distinguish itself from the competition.
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