Popular file storage and sharing platform Dropbox has obtained more than $500 million worth of debt financing, adding to the $350 million in equity funding it raised two months ago from venture and private equity investment. The new deal is lead by J.P. Morgan.
Dropbox may be securing this in order to better compete with Google, who recently dropped their competing Google Drive product’s annual price to just under $24 versus the Dropbox price of $99 for the same amount of storage for that time frame. Dropbox is also launching new products this Wednesday, probably involving new features for the current platform (music streaming or similar could be in the offing). Announcements could also include price cuts or added storage to sweeten the deal.
Currently, Dropbox cloud storage is physically kept on a combination of the company’s own distributed servers and the Amazon cloud. This additional money could be used to augment storage capacity to account for added storage sold or promised with a new offering announced Wednesday. Just one of several possibilities, it appears the most likely.
For their part, Dropbox has been playing close to the vest on what’s coming Wednesday with only a handful of expected updates coming thanks to leaks from beta testing. It will be interesting to see how Dropbox plans to continue to keep itself as Google’s top competitor in the cloud storage and sync business.