HomeGermany-StartupsCologne-based music platform simfy receives funding and plans to be profitable soon

Cologne-based music platform simfy receives funding and plans to be profitable soon

In addition to Spotify, which announced its launch in Germany for 13 March, there are a bunch of other European music streaming services that are aiming for the stars. One of them is the Cologne-based simfy.

After seeing strong growth in the last six months, Germany’s leading music streaming service simfy just announced that it aims to reach profitability within the next quarter and achieve strong revenue figures well into the double digit millions this year. An accelerated global expansion across various emerging markets is the primary target for 2012.

simfy is already available in German, French, English and Dutch. The German music streaming service gives music fans access to over 16 million songs in the cloud. Users can listen to music, create playlists, and share them via social networks. A number of service options are available including free advertising-financed and subscription-based premium services.

“Our strong growth has translated into more than 2 million users and a very healthy percentage of it is paying premium users – showing us that we have achieved very good performance in our core markets”, said Gerrit Schumann, CEO of simfy. “Reaching profitability is difficult in any music business and we are well on our way to achieving that in the next quarter.”

simfy officially launched in May 2010, and has raised €30 million so far, including a just secured “seven-digit”-funding from previous investors like Earlybird Ventures, NRW Bank and Dumont Venture. The young company also stated that a larger capital increase may be decided on in the second half of 2012 to fuel further expansion. simfy’s plans include international expansion with a number of partners, the next imminent launch being in the first non-European territory within the next 30 days.

Wondering what a young company like simfy is doing with €30 million in funding? Well, one of the things they do is to create funny TV-commercials:

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Thomas Ohr
Thomas Ohr
Thomas Ohr is the "Editor in Chief" of EU-Startups.com and started the blog in October 2010. He is excited about Europe's future, passionate about new business ideas and lives in Barcelona (Spain).

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