NetEase Cloud Music, a music streaming spinout of China-based internet services provider NetEase, closed a RMB750m ($109m) series A round yesterday that was led by media conglomerate Shanghai Media Group.
The round valued NetEase Cloud Music at $1.16bn and included Mango Cultural and Creative Industry Private Equity Fund, which invests on behalf of media company Hunan Broadcasting System’s online video platform Mango Media, and private equity fund CICC Jiatai Fund.
NetEase Cloud Music was launched in 2013 as an online music streaming platform. It reached 100 million users in mid-2015, growing to 200 million a year later and, as of this month, had reached 300 million users.
The funding will go to improving the platform’s user experience, introducing a patent rights system and expanding its content.
The company also intends to collaborate with the series A investors to establish a music ecosystem and value chain around its platform.
Another NetEase subsidiary, Fortune Finance, was financial advisor for the round.