The future of music streaming service SoundCloud has been been secured — at least for now. Today, the company announced it has received a large investment from the global merchant bank The Raine Group and Singapore-headquartered investment company Temasek. According to Variety, SoundCloud raised approximately $170 million during the largest financing round in its history.
As part of the agreement, former Vimeo executives Kerry Trainor and Michael Weissman will become CEO and COO, respectively. Co-founder Alex Ljung will step down as CEO and become chairman of the board, while fellow co-founder Eric Wahlforss will remain chief product officer.
In a statement, the company said “the investment will ensure a strong, independent future for SoundCloud, funding deeper development and marketing of its core tools used by millions of audio creators — musicians, DJs, producers, labels, managers and podcasters — that fuel SoundCloud’s one-of-a-kind, creator-driven listener experience.”
Soundcloud’s long-term outlook had been in doubt for over a year as it’s tried to compete in a crowded field of streaming services and financial losses have continued to mount. In early July, the company laid 173 employees and shuttered its London and San Francisco offices. Following the cost-cutting measures, TechCrunch reported SoundCloud didn’t have enough cash to last through the summer. The company answered the report with a statement clarifying it was “fully funded into the fourth quarter.” Now, SoundCloud has received the lifeline it sorely needed.