Dropbox has obtained more than $500 million worth of debt financing, adding to the $350 million in equity funding it raised from venture capital and private equity investors a couple of months ago, according to sources close to the situation.
The Financial Times reported on the new credit facility this morning, reporting that J.P. Morgan led the deal, which Re/code has not yet been able to confirm.
Although the FT suggested that the influx of cash would in part be used for Dropbox data centers — the online storage startup currently uses a combination of Amazon and its own servers — a source familiar with the plans said the funding did not have a specific purpose. Rather, the capital was brought in on good terms that would be applied to the company’s general business.
It’s a very good time to have cash on hand in the online storage business. Google just dramatically cut prices on its Google Drive offering, which is directly competitive with Dropbox. Drive is now about a quarter of the annual price of Dropbox ($23.88 for 100 gigabytes versus $99).
Dropbox plans to launch new products at a press event this Wednesday. Sources familiar with the company’s plans said to expect new features around productivity, moving beyond the simple notion of storing and syncing online files.
This article originally appeared on Recode.net.