DistroKid, the US-based independent music distributor backed by music streaming platform developer Spotify, has received an undisclosed amount of funding from growth equity firm Insight Partners, valuing the company at $1.3bn.
Founded in 2013, DistroKid runs a digital uploading service which allows independent musicians to put their music on streaming platforms like Spotify, YouTube, Apple Music, Pandora, TikTok, Amazon and Tidal while letting them keep all their earnings.
The company boasts more than 2 million artists on its platform and claims to distribute 30% to 40% of all new music across the globe. The funding will be put towards further developing the company’s suite of software tools.
The investment marks the third external capital injection DistroKid has disclosed. The first two came in October 2018, when it received funding from growth equity firm Silversmith Capital Partners and a similarly undisclosed amount from Spotify the same month.
Following the latest round, Silversmith Capital Partners is set to retain a “meaningful” ownership stake in the company, as well as board representation.
DistroKid CEO Philip Kaplan said: “Our growth has been wild, but the mission has not changed. Most of all, we are incredibly honoured and thankful for every artist who has chosen DistroKid to be a part of their journey.
“I am excited to partner with Insight Partners as we continue building amazing things to help musicians and empower creators worldwide.”
