Spotify Rumors For IPO, Seeking Finance Expert
Another rumored startup IPO on it’s way. This time it is the huge music startup, Spotify. Rumors have been surfacing that Spotify has been actively seeking new finance employees. Most of the time when a startup is seeking a finance professional with a background in financial reporting and regulatory issues, it usually means that the company is heading for IPO.
The Swedish startup received 250 million dollar in funding from it’s last round and was valued at 4 billion. That’s pretty insane! Rumors are currently saying that the startup is worth twice it’s original value. To date, the startup has around 25 million active users and around 6 million of them are paid subscribers. About a month ago, Spotify released a new feature that allowed artist to sell their merchandise on the platform. The feature was not considered to be a big hit for the startup, but it was able to attract more loyal artist.
Spotify has been expanding to different countries since their last founding round and plans on continuing to do so. Spotify is available in 28 markets across the globe, with the latest expansions happening in Hong Kong, Malaysia, Singapore, and Mexico. Music is huge in every country and spotify wants a piece of it. Their direct competitor, Pandora, went public back in 2011. It looks like Spotify most likely will move towards the same route as well.
In addition Spotify has been aggressively pushing their affiliate program to try to gain more subscribers. The marketing plan has helped them a lot in terms of converting users. Spotify does have a lot of overhead cost in their operations. The startup also needs to pay a huge amount of licensing fees every month as well as user royalties. A lot of musicians have complained about Spotify being cheap and not treating the artists well enough. After receiving complaints, Spotify launched the new feature that allowed artist to sell their merchandise in hopes of changing their operations.