This new round would value the music platform at $4 billion as it continues its international expansion.
Spotify has raised $250 million, the Wall Street Journal reports, valuing the company at around $4 billion. The round, led by Technology Crossover Ventures, is expected to help Spotify with its international expansion plans. Although the service is already available in most Western markets, including the US, the Swedish start-up plans to expand into new countries, including Japan.
Competition in the sector is tough. In the US, Pandora and Apple are overshadowing Spotify, while Deezer, which competes with Spotify in Europe, is also expected to launch in the US in 2014. Pandora, which went public in 2011, is valued at $5.7 billion.
Spotify generated 434.7 million euros in revenue in 2012 ($585 million). The company claims more than 6 million subscribers who pay up to $10 a month, and 24 million active users. But Spotify is still not profitable, as it is investing heavily to expand into new markets. The service is available in 32 countries, up from just 17 last year. Last year, Spotify had already raised an additional 100 million euros, including from Kleiner Perkins Caufield & Byers and DST Global, for a valuation of over three billion dollars (Read the article: ““, 12/11/12).