Beats Music wants to raise additional funding to the tune of $60 million to $100 million, according to a Billboard report cited by VentureBeat. The startup needs more cash to keep up with its bigger rival Spotify, the report said.
The Beats Electronics spin-off has failed to bring on the targeted user count since it launched in January. Aside from Spotify, it also has to compete with other similar companies including Pandora, Rdio, and Songza, the report detailed.
Spotify says it currently has over 24 million active users and 6 million paying subscribers. It is also on its way to an initial public offering (IPO) after securing a $200-million credit line. Beats, on the other hand, still has one million users and a six-figure subscriber count, the report explained.
When Beats Music was spun out of headphone maker Beats Electronics in 2013, it had $60 million in its pocket as investment. The music streaming startup has yet to comment on this news, VentureBeat added.
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