SoundCloud, the Germany based, hugely popular online audio distribution platform has reportedly amassed $35 million in debt funding from U.S. based VC firm Tennenbaum Capital Partners, reports Swedish news site Digital.

The company, which allows its users to upload, record, promote, and share their original sound productions last received funds from Index Venture Partners and the Chernin Group in January, 2014. The VC firms had funded a total of $60 million in a Series D round into SoundCloud two years ago.

Tennenbaum Capital Partners in the latest round, has loaned a sum of $35 million after negotiations. The US firm specializes in debt financing and has loaned out to tech start-ups in the past.

A SoundCloud spokesperson stated that:

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.

Back in January, exactly two years prior, SoundCloud was valued at $700 million. But the growth of the music industry has been astounding ever since, thanks to the presence of Napster, Apple, Google and Amazon – which have started their own music streaming platforms. Its rivals such as Pandora and Spotify have also been faring better, with over 70 million active users on their platform. Combined, the two platforms offer a total of 30 million tracks on their library.

SoundCloud does not have a dearth of users, and boasts of 150 million users according a report from Bloomberg. Majority of its users are young and are growing considerably since the past three years.

Users aside, SoundCloud has not fared well on the revenue front though. The company has not posted any revenues from 2013, virtually keeping people in dark as to what is the company’s financial state. Around that same year, it had reported a loss of $29 million against revenue of $14 million.

SoundCloud began in 2007 when college students Eric Wahlforss and Alexander Ljung launched the company in Berlin. SoundCloud does not rely on established paid subscription revenue model, which has been one of the reasons for its registered loses. Nevertheless, VC firms from across the globe have held a positive perception about the company. The Music sharing platform has seen investments totalling over a billion from investors such as Kleiner Perkins, Institutional Venture Partners and Index Ventures. This amass of VC funding made sure SoundCloud raised a valuation of 4.5 billion in 2014.


 

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