Stockholm-based Soundtrack Your Brand, a music streaming service for businesses, announced on Wednesday, June 14, that it has secured $15M (approximately €13.7M) in a pre-growth round of funding led by MUSIC.
The round also included funding from leading music investors Dundee Partners.
It was supported by all existing Soundtrack investors, including Balderton Capital, Fuel Venture Capital, Industrifonden, Telia, and DIG.
Soundtrack Your Brand says the funding will enable it to double down on its successful go-to-market strategy.
Moving into 2024, the Swedish firm intends to raise an additional growth round of funds to consolidate the global background music market.
As part of the funding round, Matt Pincus of MUSIC will join Soundtrack Your Brand’s board and support the company’s mission.
“It’s hard to believe but, before Soundtrack Your Brand, business owners had no legitimate option to play music on demand for their customers,” says Pincus.
“Almost every business has some need for music – and most business owners believe that music creators should be paid for their work. It sounds obvious, but it took a mountain of technological and business innovation to bring on-demand music to enterprise and Soundtrack nailed it,” he adds.
Soundtrack Your Brand: Helps businesses strengthen relationships through music
Founded in 2013 by Ola Sars, Andreas Liffgarden, and Joel Brosjö, Soundtrack Your Brand helps thousands of businesses strengthen relationships with customers through music.
Supported by its AI platform powering music selection for brands, Soundtrack Your Brand provides an all-in-one solution for streaming music to stores, hotels, restaurants, and other commercial settings.
The company has delivered 60 per cent YoY revenue growth in 2022, unlocking EBITDA profitability in Q1 2023 and reaching $25M in ARR closing April 2023.
The Swedish firm works with brands such as McDonald’s, Lululemon, Uniqlo, Joe & The Juice, Aesop, and Tag Heuer, among others.
“Our mission to bring transparency and accountability to the dysfunctional background music market is gaining momentum,” says Ola Sars, CEO of Soundtrack Your Brand.
“Our financial performance and operational efficiency are both already very strong, but with this investment Soundtrack Your Brand can expand our growth model into M&A, consolidating the fragmented background music market and ensuring continued premium ARPU and fair compensation to music creators,” adds Sars.
Soundtrack’s current ARPU is $33 and growing, claims the company compared to the B2C average of around $5.
