Spotify is close completing a $400m round of equity fundraising, which would value the music streaming service at $8.4bn.

According to reports, Spotify last week entered talks with parties for its seventh bout of fundraising, with Goldman Sachs and an Abu Dhabi sovereign-wealth fund believed to be among the investors.

The company, founded in 2006, operates a mixed model of ad-funded and ad-free subscription services, and is set to come under increased competition from digital heavyweights such as Apple and Google.

Furthermore, last month, major recording artists including Jay Z, Kanye West and Beyonce launched advertising-free streaming service Tidal. It plans to combat Spotify with a combination of exclusive artist content and “curated” features and interviews.

At the end of 2014, Spotify has 60m active users, including 15m paying subscribers. It has also tied up with partners such as taxi app Uber to enhance its customer officer.

Speaking at last month’s Festival of Media Asia Pacific 2015 in Singapore, Spotify’s Asia managing director Sunita Kaur revealed the service is planning to extend its presence in the region by launching an Asian music act.