Deezer
CM-CIC Capital Privé
AGF Private Equity

Spotify competitor Deezer raises €6.5 million Series B round

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[France] – Music search and discovery engine Deezer has raised €6.5 million in a second round of financing, bringing the total amount invested in the French upstart to approx. €12.2 million. The additional capital was raised from from AGF Private Equity and CM-CIC Capital Privé, thus joining the historical shareholders who make up the DOTCORP Asset Management funds.

Deezer is one of the most popular music services in Europe. Formerly known as BlogMusik, it ran into lots of legal trouble when it launched its free music streaming service a couple of years ago. However, unlike many other ventures of the kind the startup turned itself around, reached essential agreements with copyright associations, and ultimately relaunched as a ‘legitimately’ free music search engine back in August 2007.

As Orli Yakuel mentioned in the first part of her Guide To Music On The Web, Deezer is one of the most comprehensive music discovery services out there, combined with a slew of social features that have turned the site into a vibrant community of millions of music fans. Recently, rumors started to circulate (article in French) about an impending ‘Deezer Premium’ service, which would allow users to subscribe for €9.99 per month. That is, of course, the same price as a premium account for its major rival Spotify.

The company claims over 10 million users throughout Europe, more than half located in France, and more than one million downloads of its mobile apps.

It will be interesting to see if the extra funding will prove to be what the company needs to strengthen its foothold in Europe and rival Spotify effectively.

(Thanks to Ouriel for the tip)

  • Samuel Ryan

    Not related to the story, but that final picture reminded me of this video. I was confused.

  • http://www.3fs.si andraz Logar

    I am a big user of deezer due to extremely rich library of non-english music and made up playlists by the users. So, great, they will continue their stuff… Hopefully that means API will become public at some stage?

  • http://www.str3em.com William Blanchard

    I really hope Deezer can make this money work for them.

    I don’t believe dealing low-fi mp3 streams is where it’s at but to each it’s own.

    I believe providing a real electronic successor to optical disc is where its at delivering real 16-bit 44.1Khz: http://www.str3em.com/The_Slip_(album)

    One thing is for sure, the labels can no longer say there are not any options available to help them realize new business models. With all these technologies and services available, finding a viable business model is up to them.

  • Steve

    Deezer is way better than Spotify (no need to install a client on your mac or PC) with millions of songs and shared playlists.
    The website is easy to use and has huge amount of features (equalizer, social features, iphone app (still limited)).

    In France, Deezer has already 60% market share for audio services (source: Nielsen ratings).

    In the rest of Europe, the music catalogs are not really opened yet thus limiting the audience in european countries outside france.

    Deezer is bigger than Spotify but if sems that the bloggers and journalists have only Spotify on their radar.

    too bad !

    • http://spotinews.wordpress.com/ JB

      Deezer has really low audio quality, limited catalogue and is held hostage by the web browser… Still a decent music service and they seem to be improving.

  • http://www.gorankem.com Adam Wexler

    doesn’t look like the digital music space is lacking in funding dollars these days. has deezer turned a profit yet or is this once again based on spec?

    also, how are deezer’s chances for success affected by all the momentum spotify has on it’s side? any room for collaboration?

  • Hans

    Deezer really sucks and there is no way they will survive outside France. The new funding will go directly to the labels. And the music quality is such a joke.

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  • steve

    At least in France, it has access to artists that still elude Spotify (eg. Pink Floyd, Led Zeppelin, etc)

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  • Hakushi

    Deezer will never work outside of france, because of the f*cking labels/major, most of the catalogue is not available outside France…

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  • kwyjibo

    Deezer is like Spotify but less shit, but with no marketing. How the fuck have Spotify got so much press and launched a product later?

    No need for a client, no need to listen to ads.

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    […] Spotify competitor Deezer raises €6.5 million Series B round [France] – Music search and discovery engine Deezer has raised €6.5 million in a second round of financing, bringing the total amount invested in the French upstart to approx. €12.2 million. The additional capital was raised from from AGF Private Equity and CM-CIC Capital Privé, thus joining the historical shareholders who make up the DOTCORP Asset Management funds. TechCrunch […]

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