Spotify, the Sweden-based music streaming service backed by several corporates, is getting close to closing a $400m funding round at an $8.4bn valuation, the Wall Street Journal reported on Friday.
The company has already recruited Goldman Sachs and Abu Dhabi Investment Authority, the sovereign wealth fund of Abu Dhabi, for the series G round, according to people familiar with the matter. Reports in January suggested it was targeting a $500m round at a $6bn valuation.
Spotify has also been undergoing talks with asset managers and venture capital firms over funding. Terms for the round have reportedly been set and it is reportedly expected to close in the next few weeks.
Founded in 2006, Spotify’s online music streaming service measured about 15 million subscribers and 60 million active users as of the end of 2014, though it is participating in an increasingly crowded market, its newest competitor being Tidal, the streaming service relaunched by rapper Jay-Z in March.
The company has raised $540m in funding so far from investors including drinks manufacturer Coca Cola, Goldman Sachs, Fidelity Investments, DST Global, Wellington Partners, Horizons Ventures, Kleiner Perkins Caufield Byers, Accel Partners, 137 Ventures, Creandum, Northzone and Lakestar.
Record companies Universal Music Group, Sony Music Entertainment and Warner Music Group, also reportedly own a combined stake of around 15% in Spotify as part of a deal allowing their music to be licensed to the service.