World of Avatar cuts funding to Boom.fm amid Mxit layoffs [Update]

Online social music startup Boom.fm is set to close down after its funding was withdrawn by investment incubator hybrid World of Avatar.

In an email, which was also posted on the service’s site, the company said it couldn’t cover its operating costs with its current revenue streams.

In the mail, the company says it remains dedicated to the South African music industry:

The Boom.fm team is incredibly proud of what we have achieved in the past year. We have been true to our intention of growing and supporting the success of the local music industry. The caliber of people we have in our community is really special. You are some of the most influential and forward thinking individuals in local music scene and it’s been a crazy, wonderful ride working with you all.

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