Online music service platform SoundCloud completes $70 million in debt financing

SoundCloud, a popular but financially troubled online music service, has announced that it has secured $70 million in debt financing to support its growth plans.

Original title: Music service SoundCloud completes US$70 million in debt financing

On March 24, Beijing time, SoundCloud, a popular but financially troubled online music service, announced that it has received US$70 million in debt financing to support its growth plans.

SoundCloud warned earlier this year that it risked running out of money if it failed to attract more paying users. The loan came from Ares Capital, Kreos Capital and Davidson Technology. The company said in a statement that it would use the financing to develop technology and recruit talent, while developing a "financially sustainable platform."

Berlin-based SoundCloud has previously explored other financing channels, including financing from existing investors and selling the company. People familiar with the matter said takeover talks between them and Spotify broke down last year.

SoundCloud has approximately 175 million registered users and is one of the most popular music platforms in the world. The company provides a lot of user-original content, dance music, podcasts and other content. They have been hoping to cash in on this popularity and launched a subscription service last year to compete with Spotify and Apple, but failed to achieve much success.

Editor: Nancy