France-based music streaming platform Deezer raised €100m ($110m) yesterday in a round led by conglomerate Access Industries that also included telecommunications company Orange.
Founded in 2007, Deezer operates a music streaming service that has accumulated more than six million subscribers spanning more than 180 countries.
The company claims its music catalogue, which includes more than 40 million songs, is the largest of any streaming platform worldwide, and it also provides access to some 40,000 podcasts.
The company had raised more than $150m from investors including Access and Orange as of September 2015, when it filed for a €300m initial public offering in its home country. However, the company withdrew from the IPO the following month citing market conditions.
The IPO filing revealed that Access, which invested €100m in Deezer in 2012 alongside private equity fund Idinvest Partners, was the company’s largest shareholder, owning a 36.7% stake.
Orange held a 14.6% stake, while other notable shareholders included private equity fund DC Music, IdInvest and CM-CIC Capital Privé. Media firm ProSiebenSat1 and record companies Universal, Warner Music, Sony and EMI have signed agreements that will entitle them to shares when Deezer does float.
Deezer plans to spend the new funding on customer acquisition across the globe as it seeks to keep up with Spotify, Soundcloud and Apple Music. It also intends to launch new features and growth initiatives while creating additional programmed music and audio experiences.
Pierre Louette, CEO delegate of Orange, said: “Consumers everywhere are listening to music on their mobile phones, and this represents a massive opportunity for engagement and increased usage.
Capitalising on this shift, Deezer has built a high-quality service, constantly improving its user experience with new services: personalised radio, high-definition audio, lyrics and now the largest music catalogue in the world.
“We are thrilled to be investing in the music streaming market as we have always been convinced it was a tremendous opportunity to drive innovation on a global basis.”