Music sharing platform, Souncloud is currently experiencing some financial challenge. The company reportedly announced that about 40% of its work force would be disengaged and it’s London office closed.

However, other sources have disclosed that the startup company’s issues run deeper than what is being revealed. The company is currently looking for investors to pump in money otherwise they might be folding in as little as 50 days!

This would mean bad news to a lot of Nigerian artists who aren’t signed under a record label and use the platform to share their music. Notable among them are: Odunsi The Engine, Lady Donli, Tay Iwar, Genio Bambino and more. Even the big names are not left out as they use Soundcloud to give back to their fans with free music.

Bella Alubo who is currently signed to Tinny Entertainment also got her big break through Soundcloud.

Read the statement issued by the Soundcloud team below:

There are a number of inaccuracies within the TechCrunch article. They seem to stem from a misinterpretation of information by one or two laid off employees during a recent all hands meeting.

Due to the extensive number of inaccuracies, we will only comment regarding funding and layoffs. To clarify, SoundCloud is fully funded into the fourth quarter. We continue to be confident the changes made last week put us on our path to profitability and ensure SoundCloud’s long-term viability. In terms of layoffs, it is our policy not to discuss individual employee cases, but we can share we continue to work with all employees who were let go to support them during this transition, with employment and financial assistance.

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