Deezer has long lagged behind Spotify, Apple Music, and Amazon’s Music Unlimited offering, but maybe there’s room for more.
The Paris-based company announced today that it has raised €160 million ($185 million) in funding. This new round of fund-raising gives the company a valuation of more than €1 billion ($1.16 billion).
Some of the new investors in this round include parent Access Industries, as well as Orange, LBO France, and Kingdom Holding Company and Rotana Group.
Alongside the announcement of fresh funding, the company also announced a new strategic partnership with Dubai-based Rotana Group. The agreement will see the music streaming company handling the distribution of Rotana Group content across North Africa and the Middle East.
Rotana’s CEO, Salem Al Hindi, said the partnership between the two companies would help expand the reach of their unique Arabic music offering by delivering high-quality streams to a global listening audience. Deezer CEO Hans-Holger Albrecht said the new distribution agreement between his company and Rotana would provide a unique opportunity for expanding the streaming company’s market presence.
Deezer’s streaming presence has been a significant competitor to Spotify in pockets of the European market, although it’s virtually unknown in the US market.
According to the most recent statistics, the company boasts a monthly active user base of 15 million users listening to a catalog of more than 53 million tunes. The company has managed to secure a total of $531 million from investors, which includes this most recent round of funding.
With the expanding presence and investment from the Middle East, Deezer could be re-focusing on emerging markets to establish better market share. That direction could make sense for the struggling streaming company since the US market is saturated with streaming services — all of whom are intensely competitive.