Spotify Ltd., the music streaming service, raised $250 million in financing led by Technology Crossover Ventures to back its expansion into new territories, including Japan, a person with knowledge of the terms said.
The financing also comes as Spotify is renewing agreements with record companies, including Vivendi SA (VIV)’s Universal Music Group and Sony Corp. (6758), said the person, who asked not to be identified because an announcement isn’t planned. The funding brings Spotify’s valuation to more than $4 billion, the Wall Street Journal reported earlier today.
Spotify, based in Stockholm, is seeking to beat competitors to new territories. The company offers a free advertising-supported service on computers and a $9.99 monthly ad-free plan on mobile and other devices. The website lists over 24 million active users and more than 6 million paying subscribers. The closely held company, founded by Daniel Ek, operates in 32 regions including the U.S., U.K. and Hong Kong.
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