SoundCloud, the Berlin-based music streaming giant has announced that they have raised $35 million with Tennenbaum Capital Partners. Amidst all the controversy and losses, the latest offering comes as a boon to the music platform looking at the reports issued back in 2013 which suggested them leaking $15 million a year after which no further revenues have been posted. Moreover, reports also confirm that SoundCloud have an option to borrow another $70 million in funding through convertible bonds. Confirming the news, a spokesperson from their side issued a statement saying,
“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.”
Their latest investment comes as a follow up to their $60 million funding back in 2014 by Index Venture Partners and the Chernin Group. Although looking at SoundCloud’s recent misfortunes, they have been backed by a consistent user base, with over 150 million registered users and manage to go past other heavy hitters like Spotify and Pandora. Also, it is home to a heavy load of unknown musical gems and artists making it extremely popular with younger section of society.
For SoundCloud, their main concern lies in their struggle to monetize the platform with recent deals inked with Sony and Warner at the backdrop. And, it just gets more and more interesting or even painstaking to see how streaming platforms manage to make profits out of their services with all royalties and licensing creating a crunch scenario. But, for now they have managed to survive.
Source : Tech Crunch
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