SoundCloud, a third party music streaming service is reportedly in talks to raise about USD 150 million round of funding, bringing its valuation to over USD 1.2 billion.
Earlier this year, The Berlin-based music streaming company had secured USD 60 million from GGV, IVP and The Chernin Group. Also, recently the company had entered into a licensing deal with Warner Music Group, which reportedly included giving WMG a stake in the company.
Launched in 2007, as a venture of Chief Executive Alexander Ljung and CTO Eric Wahlforss, SoundCloud provides an online audio distribution platform where anyone can create sounds and share them with friends or publicly to blogs, sites and social networks.
In October, it had partnered with Twitter and designed a new feature called Audio Card lets users discover and listen to audio directly in their timeline or message feeds on both iOS and Android devices.
As per Quibb report, the company services are used by more than 175 million listeners each month while its competitor Spotify has over 50 million users. Spotify received USD 250 Million in its last round of funding led by Technology Crossover Ventures, at valuation of more than USD 4 billion.
Besides Spotify, which still has relatively less number of users, the company might be feeling heat from Google. Since Google is already having some music streaming products, such as Google Play Music and Youtube, and has acquired Long Island City-based music curation and streaming service, Songza to further strengthen its music entertainment services portfolio.