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Russian music service Zvooq receives $20 million investment

0 20 August 2014

 

Russian startup Zvooq, owned by holding company Dream Industries (which also owns Bookmaye, Unisound, Theory and Practice and DI Telegraph) has received round A investment totalling $20 million. The investment came from Russian online electronics store Ulmart, which led the round, as well as private investment fund Essedel Capital from Helsinki.

The majority of the funds are to me used for product development and music licensing. The startup’s business model consists of allowing partners to integrate the free music streaming service into their own products. Part of the remaining funds will be used to launch the service in several new countries, though precisely which is yet to be specified.

Founders of Zvooq, Victor Frumkin and Simon Dunlop call the project an “ecosystem of music services, beinging together listeners, musicians and label”. According to their official data, the Zvooq catalogue counts on 25,000 labels and more than half a million artists. On the Zvooq.com site you can listen to free music, buy tracks and albums, make playlists, and follow what friends are listening to. The site is linked to both Facebook and VKontakte, and there is also a mobile app, which must be paid for with a monthly subscription.

The company has taken care to point out that all music on the site is legal, and funded by adverts played between songs.

Victor Frumkin:

“All the content on Zvooq.com and on our apps is completely legal. We are bringing some order to the chaotic Russian music market.”

As well as in Russia, Zvooq is currently available in Ukraine, Kazakhstan, Belarus, Azerbaijan, Uzbekistan, Turkmenistan, Georgia, Armenia, Tajikistan, Kyrgyzstan and Moldova. It currently has 2.7 million registered users, the majority in Russia.  

Source: CNews.ru

Top image via Shutterstock

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