Pebble resorts to $5 million loan to "stay afloat"

Wearable maker Pebble is reportedly undergoing financial struggles and has resorted to a loan to stay afloat.

According to a TechCrunch report, Pebble "has turned to a Silicon Valley bank for a $5 million loan and $5 million line of credit," citing sources close to the smartwatch startup.

The report goes on to say that Pebble's request for additional funding has been turned down by venture capitalists from Silicon Valley.

While Pebble is one of the strong contenders in the smartwatch arena, the launch of the Apple Watch, and the huge figures that came along with it has somehow affected the company. On top of that, the increasing number of smartphone brands producing Android Wear devices have become additional competitors for the startup.

However, Pebble's CEO Eric Migicovsky expressed confidence in the company when he spoke at Wearable World Congress in San Francisco last week.

"We're focused on keeping is simple, affordable and useful. Google has put forth a dozen different watches. Apple has put forth a high fashion watch and this is great," he said.

The Pebble Time and Pebble Time Steel just launched earlier this year and broke all Kickstarter records, with $20,338,986 raised and 95,906 watches sold. However, it is said that these were not eniugh to keep the company afloat.

Pebble is not alone in this battle as fitness tracker Jawbone has earlier reported to have financial struggles as well due to its failure to make profit.