As a company that has had it's ups and downs over the course of the past year, Soundcloud landed some great news today by reporting it has secured 300 million Swedish krona (about $35 million) through Tennenbaum Capital Partners, reports Digital.
The new agreement also states that Soundcloud will have the opportunity to borrow 600 million Swedish krona (~ $70 million USD) through convertible bonds.
A spokesperson for Soundcloud released a statement to Tech.Eu that confirmed the deal:
"We can confirm that we secured a flexible credit line with Tennenbaum Capital Partners (TCP) early in 2015. It’s an attractive option for companies like SoundCloud that have a solid credit rating, and offers an appropriate funding option for a company at our growth stage."
Soundcloud's most recent reported funding came back in January 2014, according to Crunchbase, when the company secured $60 million from Index Venture Partners and the Chernin Group with Soundcloud valued at $700 million. Also, an interesting point to mention is that it has been nearly 3 years since SoundCloud reported any revenue figures, the last time being in 2013 when it was seeing $29 million loss on $14 million in revenues.
This news comes on the heels of an agreement regarding artist royalties between Soundcloud and PRS For Music, which settled a lawsuit last month. Soundcloud also previously announced a paid subscription service that further proves the company is working on ways to iron out their platform in order to increase revenue.
Soundcloud has also been catching heat from users due to the site removing content for supposed copyright infringement. Jackmaster recently had all of his mixes removed from the site, Lido had his account frozen and Oneman had his mixes removed as well. Bootlegs have also been taken down and has prompted the question of whether or not bootlegs should be allowed on the site. Whatever the case may be, news of debt funding is positive for Soundcloud and we'll be anxiously waiting more news on how the company will improve moving forward.
We'll have more information regarding Soundcloud as it arises.