Online music streaming service Spotify has begun informal talks with investment banks over the possibility of going public in autumn of this year, Quartz has reported, citing sources familiar with the process.
Founded in Sweden in 2006, Spotify has secured from Coca Cola, Goldman Sachs, Fidelity Investments, Horizons Ventures, Creandum, Northzone, Wellington Partners, Kleiner Perkins Caufield Byers, Accel Partners, Digital Sky Technologies 137 Ventures and Lakestar. It has raised about $540m in funding and its last round, which comprised a $250m investment by Technology Crossover Ventures in November 2013, valued the company at more than $4bn.
Quartz also cites the fact Spotify has already this month acquired Echo Nest, the company that provides its analytics platform, and secured a $200m credit line with several big banks including Morgan Stanley, Deutsche Bank and Goldman Sachs, all of which may seek to secure a spot as an underwriter in any initial public offering.