UK digital media and music retailer 7digital has taken £4.25 million in a round led by Sutton Place Managers that included original investor Balderton Capital (formerly Benchmark Europe).

7digitial currently has 1.1 million customers with access to a library of over 3.5 million music and video downloads available from 99p each. The company starting offering DRM free downloads in December and has since seen a 188% increase in sales, following the popularity of DRM-free tracks. It would be fair to say that for a relatively smaller player 7digital has played one of the savviest games in the digital downloads market in the UK to date, especially in moving away from DRM.

Covering the UK, Ireland and Germany, 7digital also provides branded digital solutions for clients such as ITV & Channel Five, Pringles, Miller, Last.FM & Bebo. Under the deal Patrick Maxwell from Sutton Place Managers (investors in media properties such as Getty Images and Cricinfo) will join the 7digital board.