SoundCloud CEO Alexander Ljung
Music streaming service SoundCloud has raised $70 million (£56 million) in debt funding, according to documents filed with Companies House in the UK.
The documents show that SoundCloud raised the loan from Kreos Capital's fifth debt fund, as well as the Davidson Technology Growth Debt Fund and Ares Capital. The loan was agreed on March 10, the documents show.
SoundCloud confirmed the debt funding round in a statement to Business Insider.
Here's the full statement from SoundCloud:
"We are pleased to have secured a flexible $70 million credit line from Ares Capital, Kreos Capital and Davidson Technology that is ideally structured for a company with our strong credit rating and in our stage of growth. This new funding will enable SoundCloud to strategically grow our technology and personnel resources to fuel our expected 2.5 times year-over-year growth in 2017, while building a financially sustainable platform on which our connected community of creators, listeners and curators can thrive for years to come."
SoundCloud last raised money in June 2016 when it raised around $70 million from Twitter Ventures, Twitter's investment arm, as part of a $100 million (£80 million) round.
The new round of debt funding comes after SoundCloud admitted in its 2015 accounts that it may be forced to raise money:
"Whilst the directors believe that the Group will have sufficient funds to continue to meet its liabilities through 31 December 2017, the risks and uncertainties may cause the company to run out of cash earlier than that date, and would require the Group to raise additional funds which are not currently planned.
These matters give rise to a material uncertainty about the Group’s ability to continue as a going concern."
This chart from Music Business Worldwide shows SoundCloud's finances as of its 2015 accounts:
This isn't the first time that the music streaming service has raised debt funding. In January 2016 it raised around $35 million (£28 million) from Tennenbaum Capital Partners.
And in February it was reported that SoundCloud's COO and finance director had both left the company.