Berlin-based audio sharing platform SoundCloud has successfully secured $35 million in debt funding from an American firm, Tennenbaum Capital Partners, according to DiGITAL, a Swedish-based news site. Apart from the initial loan of $35 million, the company was also allegedly given the option to borrow an additional $70 million in the form of convertible bonds.
Tennenbaum Capital Partners, the company which granted the audio sharing giant the loan, has made a name for itself in the business world as an investment firm which specializes in credit and "special refinancing situations," reports The Business Insider.
The granting of the $35 million loan was confirmed by a spokesperson from the company, who stated that the American investment firm offers satisfactory funding options for SoundCloud's needs.
"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 spokesperson said, according to Tech Crunch.
Two years ago, SoundCloud was valued by analysts at $700 million. Through the years, however, the music industry has experienced a massive surge in growth, thanks to the services offered by companies such as Napster, Apple, Google and Amazon.
Of course, intense competition from upstart audio streaming service companies such as Spotify and Pandora, which now boast millions of active users and about 30 million tracks in their combined library, also helped push the music industry forward, reports The Tech Portal.
By successfully securing the loan, SoundCloud has managed to make itself more equipped to tackle the challenges from competitors and a rapidly-evolving market in 2016.
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