LOS ANGELES — SoundCloud has gotten a last minute cash infusion that extends the life of the struggling audio service.
With the new funds comes a new CEO, former Vimeo head Kerry Trainor. He replaces co-founder Alexander Ljung, who steps into a new role, as chairman of the company.
Investors the Raine Group and Singapore-headquartered investment company Temasek added the new funds. SoundCloud didn't reveal a total figure to the investment, but Billboard reported it at $169.5 million.
"This financing means SoundCloud remains strong & independent," said Berlin-based Ljung in a blog post. He called the funding "the largest financing round in the history of SoundCloud."
SoundCloud started ten years as the "YouTube of audio," a place for young musicians to share their music tracks and remixes without having to worry about a video track to go along with it. It's since expanded to include podcasters and audiobooks as well. A huge following came to SoundCloud, with the company often citing 175 million visitors monthly. However, that stat hasn't been updated since 2014.
In 2016 SoundCloud launched a music subscription service, offering similar features to Spotify, Apple Music, and others, but it's gained little traction.
The company earlier laid off 40% of its workforce in a bid to stay solvent, saying goodbye to 173 employees, and shuttering several of its offices. SoundCloud said earlier it only had enough cash to remain in business through the end of the year.
Raine is also invested in Vice Media, Imagine Entertainment and Important Studios, from South Park creators Matt Stone and Trey Parker.
While SoundCloud has been losing money, it's also been bringing in funds from advertisers and subscriptions. The company says its total revenue has more than doubled, to a more than $100 million annual run-rate this year.
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