European digital music service Spotify is poised to announce an investment infusion from a group of high-profile investors including funding from Hong Kong heavyweight Li Ka-Shing.
The FTreports that the advertising backed legal online music on-demand service is raising up to €35 million (50.5 million), which will be used to launch the service in the US.
The music outfit is still experimenting with its business model, which would be a hybrid ad-funded and subscription basis.
Li Ka-Shing’s charitable arm, the Li Ka Shing Foundation, in addition to UK based VC Wellington Partners, have been tipped as the biggest backers for the latest round of funding. Digital investments are increasingly on Li Ka-Shing’s radar, as he has already invested in Facebook and Joost.
Spotify was launched in 2006 by Swedish entrepreneurs Daniel Ek and Martin Lorentzon and has offices in Luxembourg, London and Stockholm.