Sweden-based music streaming service Spotify has attracted a $115m investment from landline and mobile phone network operator TeliaSonera in return for a 1.4% stake.
Although only TeliaSonera has revealed its investment so far, the full round is worth $526m and values Spotify at $8.53bn, sources have told technology news publication TechCrunch.
Also according to TechCrunch, the round includes investment firm Goldman Sachs, and Baillie Gifford, Landsdowne Partners, Rinkelberg Capital, Senvest Capital as well as Discovery Capital Management.
Halcyon Asset Management, GSV Capital, DE Shaw, Technology Crossover Ventures, Northzone and P Schoenfeld Asset Management are also said to be contributing.
The round was previously reported as targeting $400m. Abu Dhabi Investment Authority, the sovereign wealth fund of Abu Dhabi, was rumoured to invest but appears to have pulled out.
The news follows technology company Apple’s announcement earlier this week that it will launch its own music streaming service through Beats Music, which it acquired last year for $3bn. Apple is targeting 100 million users with a launch across 100 countries.
Spotify previously raised a total of $540m from backers including drinks manufacturer Coca Cola, as well as Goldman Sachs, Fidelity Investments, DST Global, Wellington Partners, Horizons Ventures, Kleiner Perkins Caufield Byers, Accel Partners, 137 Ventures, Creandum, Northzone and Lakestar.
Three record companies, Universal Music Group, Sony Music Entertainment and Warner Music Group, are said to own a combined 15% stake as part of their licensing agreement with the platform.