Soundcloud is not going to die after all. India music’s favourite streaming portal has indeed secured investments from The Raine Group and Temasek, making it the largest round of financing SoundCloud has ever raised. The company also announced that former Vimeo executive Kerry Trainer will become the CEO of SoundCloud replacing founder Alexander Ljung.
Ljung wrote in his blog that SoundCloud is “here to stay” as a “strong and independent” company. As part of the investment, Kerry Trainer will become the CEO while another Vimeo executive, Mike Weissman will be the Chief Operating Officer. Ljung will remain in the company as Chairman.
SoundCloud has been under trouble for years. It was reported earlier that the company had just enough money to survive 80 more days . The company also laid off around 40 per cent of its staff. The company has straddled with cash issues after deciding to go Premium after which it had to pay around 70 per cent of its revenue to record labels as royalty.
After the funding round, Ljung explained that the company “is set up as an even greater team for the decade(s) to come.”
However, the company might as well think on tweaking its business model if it doesn’t want to land in the same soup once again.