Soundcloud takes out a loan of 65 million euros due to a lack of investors

Music streaming platform Soundcloud has taken out a loan of 70 million dollars, converted 65 million euros. The company failed to get the money from an investor. Soundcloud has been running at a loss for several years.

The loan was discovered by the UK arm of Business Insider, who found documents about it in Companies House, similar to the Chamber of Commerce’s business register. The loan comes from various investor companies. In a response, Soundcloud says that the money will go towards the ‘growth and financial stability’ of the company.

According to Business Insider, it is the second time that Soundcloud has raised money through a loan instead of through investments. In January of last year, the company is said to have borrowed $35 million. In addition, two Soundcloud leaders resigned in February of this year. Competitor Spotify has long considered taking over Soundcloud, but seems to have refrained from doing so because it does not want the service to be a burden in a year when Spotify may go public.