Berlin-based music streaming company, SoundCloud has raised $35 million in debt funding from U.S. based VC firm Tennenbaum Capital Partners. As per Swedish technology news site DiGITAL, the company also has the option to borrow another $70 million through convertible bonds.
Tennenbaum Capital Partners is a US-based firm, that specializes in debt financing and invests in both performing credit and special situations, primarily in North American middle-market companies.
In its last round, SoundCloud had secured $60 million from GGV, IVP and The Chernin Group. The company has received over $120 million so far. In December 2014, Quibb reported that SoundCloud was to raise $150 million at a valuation of over $1.2 billion, but no deal happened at that time.
A SoundCloud spokesperson said in a statement to Tech.Eu:
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.
The company has about has 150 million registered users, according to a report by Bloomberg. It competes with the likes of Pandora and Spotify, who have over 70 million active users on their platform and both offers a total of 30 million tracks on their library. Napster, Apple, Google and Amazon have also started their own music streaming platforms.
Launched in 2007 by Alexander Ljung and Eric Wahlforss, SoundCloud allows its users to upload, record, promote, and share their original sound productions with friends or publicly to blogs, sites and social networks.