Ares in $70m debt round for Soundcloud

The company will use the extra funding to expand its technology and personnel resources to match an expected 2.5x year-on-year growth. Further details around the debt facility were not disclosed.

According to the company's 2015 financial report, Soundcloud recorded an operating loss of €48.7m, down from €39m in 2014. It generated revenues of €21m, which its overheads far outstripped during this growth phase.

Soundcloud has received several rounds of venture capital funding since inception in 2007. Doughty Hanson Technology Ventures invested €2.5m in the first institutional round in April 2009, prior to which the company had received seed funding from business angels including music producer Chris Zippel.

Index Ventures led the next round in January 2011 for an estimated €7.48m before Kleiner Perkins Caufield & Byers led a €50m round a year later. The company's $700m valuation in 2014 then allowed it to raise another $60m in a series-D round led by Institutional Venture Partners. Finally, German Startups Group provided Soundcloud with additional capital in June 2015 prior to the current debt round.

Founded in Berlin in 2007, Soundcloud launched its product in 2008 and has since grown its user base to 40 million registered users and 175 million unique monthly listeners. It has recently relaunched its subscription offering, Soundcloud Go, to encourage users to pay for its services.

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