SoundCloud, the Berlin-based online music streaming platform, has managed to raise new funds as CEO decides to step aside.
During Rio Olympics in 2016, SoundCloud was one of the coolest apps that athletes relied on to beat their stress levels. It is the same company that, fired 40% of its workforce in July this year due to of lack of funds, has now got fresh funding from two organizations named Temasek, the wealth fund of Singapore and investment bank of New York, Raine Group. However, there is no exact information on the amount of funding and the related conditions.
As per the source closely associated with the investment, the funds contributed to about $170 million or approximately INR 1,087 crore. One of the e-news websites ‘Axios’ had displayed these figures based on the term sheet of the agreement. In May, Apple had devised a strategy to get more subscribers with its free trial service of 3 months. SoundCloud faced a difficult phase at the time of creating a subscription plan in order to outdo its competitors such as Amazon, Spotify, and Apple and be the music pioneer.
With this new investment, the respective former CEO and COO of Vimeo, Kerry Trainor and Michael Weissman, would be seen in the same designations at SoundCloud. While the founder and CEO of the company, Alexander Ljung will now be the chairperson of the board, the co-founder, and Chief Technology Officer, Eric Wahlross will be a part of SoundCloud as the Chief Product Officer.
Earlier, the online music streaming company had shut down its offices in San Fransisco and London and emphasized on its progression in New York and Berlin. With this recent funding, the company will be able to create and market its essential tools among the ones in the music and audio industry.
SoundCloud is a famous brand offering free services to millions of people living worldwide. And now with the latest updates, we hope that these fresh investments turn out to be lucrative for the company’s development.