With new funding of 250 million dollars, the music streaming service Spotify exceeds $4 billion valuation and it is also preparing the conquest of new markets, even if the company continues to lose money.
Investors still strongly support Spotify streaming music service with a new round that brought $250 million to continue its efforts and presence in new markets, including Japan. This new agenda would value the company at more than $4 billion and will allow it to continue to increase in competition, including that of Pandora, valued at $5.7 billion.
The turnover of the company continues to grow, but its losses are increasing due to human pressure on the music played by a growing subscriber base and expenditure required to settle into new markets.
Spotify is one of the few examples whose conversion rate is important and can generate a steady income from subscriptions, the rest from advertising. The company boasts 6 million subscribers and 24 million users of the free service, with a presence in 32 countries and trade agreements with 25 mobile operators. It had already raised $100 million last year, which enabled it to reach 3 billion valuation.
With respect to listing, fashionable topic among companies from the Web, the idea is not yet valid in Spotify even though its CEO Daniel Ek does not precludes the medium for long term.