Following reports of financial struggles that could result in bankruptcy, it appears SoundCloud has been saved.
According to TechCrunch, the music streaming platform has closed a necessary funding round to keep them afloat.
The report says that New York investment bank Raine Group and Singapore’s sovereign wealth fund Temasek stepped in with a new Series F funding round of $169.5 million. Additionally, CEO Alex Ljung is stepping down, but will remain chairman, as former Vimeo CEO Kerry Trainor replaces him.
In July, SoundCloud laid off 40 percent of its staff, getting rid of 173 employees in an effort to cut costs; and it had just enough cash to last into Q4.
“Today’s investor decision was viewed as a do-or-die moment for the company. Now, it will have the opportunity to try to right the ship, or sail into an established port via acquisition,” writes TechCrunch.
While SoundCloud did not share valuation or quantity of the new funding round, Axios reports that the company was raising $169.5 million at a $150 million pre-money valuation, down from the $700 million valuation in its previous funding rounds.
“This financing means SoundCloud remains strong, independent and here to stay,” said Ljung in a statement.