Deezer joins unicorns after raising €100m in private funding

The Paris-based group secured funding from existing investors Len Blavatnik’s Access Industries

Little Boots performs as part of the Deezer Bandwagon Tour which celebrates the launch of a free music streaming service in the UK at Red Gallery Car Park (Ian Gavan/Getty Images for Deezer)

Music streaming company Deezer has drummed up €100 million in private funding, less than three months after pulling the plug on its €300 million float.

The Paris-based group, which blamed market conditions for abandoning stock market plans in October, secured funding from existing investors Len Blavatnik’s Access Industries, which owns Warner Music Group, and French mobile operator Orange.

The cash injection is understood to have valued the start-up at more than $1 billion, meaning it joins the growing stable of so-called “unicorn” companies.

Ukraine-born, London-based Blavatnik has an estimated wealth of $20 billion. He was an investor in Dr Dre’s Beats before it was sold to Apple for $3 billion in 2014 and took part in Deezer’s previous €100 millon fundraiser in 2012.

Investor concerns about the profitability of music streaming companies peaked just before its planned float. US streaming firm Pandora Media’s shares crashed after admitting Apple’s entry into the market was harming revenues.

Deezer chief executive Hans-Holger Albrecht said: “Should market conditions change down the line [an IPO] is certainly something we’d reconsider.”

The company, which turns a profit in its home market, hopes the funding will help it get to breakeven in other countries.