Berlin-based music streaming service SoundCloud has been tossed another lifeline: SoundCloud has raised $70 million in debt funding from Ares Capital, Kreos Capital and Davidson Technology earlier this month. The funding was first reported by Business Insider, and has since been confirmed by the company.
“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,” the company said in a statement.
The new funding comes after reports surfaced earlier this month that SoundCloud was considering a fire-sale exit because it hadn’t been able to raise the necessary money to continue its operations.
SoundCloud responded to these reports by acknowledging the need for new capital, but denied that it was getting ready to sell for pennies on the dollar. “We are actively speaking with a variety of potential investors and other strategic partners,” SoundCloud told Variety at the time.
SoundCloud had raised $70 million from Twitter in June of 2016, after raising another $35 million of debt financing in January of last year.
The new debt financing doesn’t necessarily mean that SoundCloud is in the clear — creditors expect to be repaid, after all. However, it should give the company some capital to keep going, and possibly shore up its numbers in order to get a better deal if and when it finds an acquirer.