7digital Group has secured a 12-month loan of £500,000 with a UK-based lender.

Non-dilutive funding, the money will be used for working capital purposes as the company aims to reach profitability by the end of Q2 this year.

“This debt facility will support the company’s growth with non-dilutive funding as it continues to make rapid progress towards operational profitability by the end of Q2 2020," 7digital's chair Tamir Koch explained.

"7digital has signed multiple contracts in recent months and this facility provides additional financial flexibility to execute on our healthy pipeline of deals with companies and innovators seeking to capitalise on the growth in audio and music streaming.”

Last year 7digital faced going into administration after issuing a statement to the stock exchange that it needed to raise £4.5 million by July 31, 2019.

By Paul Stokes

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