Spotify is planning to raise $500m in a new round of funding, with the move expected to delay the company’s planned IPO. The funding will be supported by Goldman Sachs.
The Wall Street Journal reports that the latest funding round would increase Spotify’s valuation by $6bn-$7bn. The music streaming service raised $250m in its last funding round in late 2013, bringing its valuation to over $4bn.
Launched in Sweden in 2008, Spotify has been one of several firms competing to capture share in the growing music streaming market, with an overall customer base of 60 million.
Reports claim that raising popularity of streaming music over the internet led to the decline of music downloads in 2014 for the first time, in both the UK and the US.
Currently being offered in 58 countries, Spotify reportedly captured 2.5 million subscribers during November and December 2014, with its monthly subscribers reaching 15 million, up from 12.5 million listed in November.
Spotify’s growth was mainly fuelled by the introduction of promotional price discounts in some of its major markets, including the US, with British students being offered a 50% off from the total price of £9.99.