European music streaming company Spotify is in the process of a fundraising round with a value of at least $100m (€73.3m), reports suggest.

Tech Crunch reports that the round is thought to be led by DST, a Russsian venture firm that has backed Facebook, Groupon and Zynga, and will value the company at $1bn.

Spotify recently announced a partnership with Shazam, which will enable smartphone users to buy music from Spotify that they have discovered using Shazam’s recognition technology. So far Spotify has raised €82.3m, the most recent of which was a small round led by Founders Fund last year.

The company has struggled to launch its service in the US, although there have been rumours that the company has managed to secure some partnerships with record labels.

Apple has recently announced a new subscription model, which will give them a cut of 30 per cent of revenues if music is accessed through iTunes. This charge makes it expensive for streaming companies like Spotify to provide services on Apple devices such as the iPad and iPhone.

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