Germany-based music streaming service SoundCloud has begun talks to raise $150m at a $1.2bn valuation, the Wall Street Journal reported on Tuesday, citing two people with knowledge of the negotiations.
SoundCloud has raised $120m since it was founded in 2007 from backers including online media platform Chernin Group. Chernin led the company’s $60m series D round in March this year, raised at a $700m valuation.
The prospective investors in the latest round were not disclosed.
Reports in July suggested SoundCloud had planned to issue stakes sized between 3% and 5% to record companies Universal Music, Sony Music Entertainment and Warner Music as part of licensing agreements, though no such deal has since been closed.
SoundCloud is seeking funding in order to compete with well-funded rivals such as Spotify and Beats Music. It has 175 million unique users each month, far more than Spotify, but has not yet been able to monetise the service.
Existing investors in SoundCloud also include Kleiner Perkins Caufield & Byers, GGV Capital, Institutional Venture Partners, Index Ventures, Eniac Ventures and Union Square Ventures.