Guvera eyes IPO with $100m investment as CEO puts ‘rapid’ user growth ahead of profit
Australian music streaming firm Guvera claims it is set to receive a “significant” round of funding as speculation mounts over a possible listing on the Australian Stock Exchange.
The company declined to comment on the prospect of an Initial Public Offering, but said an investment bank is involved in a $100 million placement to further grow the business.
“We have had numerous investment banks interested,” chief executive Darren Herft told Mumbrella. “Yes we have chosen one and yes we have engaged one but I can’t disclose which one nor the exact status. But there will be a substantial investment.”
I just can’t see room for another streaming co. Even Spotify must be shaking in their boots with the launch of Apple Music.
This article should also mention that Mr Herft is also the Executive Chairman of the private equity group, AMMA – which is itself a major investor in Guvera.
Curious if JPMorgan was approached for comment, Mumbrella? And if not, why?
Hi Bud Fox
Yes, JP Morgan was approached, but declined to comment.
The line has been added to the story.
Cheers
Steve – chief reporter, Mumbrella
Can’t really imagine JP Morgan would be interested in a backdoor listing.
“Think about the real victims: Calvin Klein, Gloria Vanderbilt, and Antoine Bugleboy — people who saw an overcrowded market and said, ‘Me, too!” – Homer Simpson
Tough market to be entering into. Look at Tidal as an example, apart from the launch, we haven’t heard much about how they’re faring. From what I understand they’re playing their cards very close to their collective chest. It makes sense for Guvera to go after emerging markets but there’s no revenue there. The big players like Spotify, Apple Music and Pandora are carving up the established markets and their power in the market place will give them an enormous advantage when they decide to move into emerging markets to compete. Also, the sleeping giant is Soundcloud that have enormous respect from artists and listeners alike. If any company was going to make a success of branded channels at the moment it would be them.
Why would anyone in their right mind invest in these guys if their focus is not on making a profit? Crazy. Terrible business model. For every Snapchat, Facebook there are a million startups that don’t make it. Instead of trying to build a user base and then try and sell, perhaps focus on making a profitable business from day one.
This is great, this is fantastic. The only problem will be is what to do with all the cash.
Where are all these users? If you go on their Facebook the posts have hardly any likes or comments. Surely if they have 13m users they should have more interaction on social media.
I just can’t see how this service can compete with large global cos Deezer, Spotify, Rdio, Tidal, google Music, Apple Music and Pandora. Or the Aussie JB Hifi now. And why would anyone choose this over a well known name? It’s not as if Indians can’t use Apple Music
“growing broke” seems to be a suitable term for this business.
Any business model that is not focused on making a profit is doomed to fail.
After more than five years in this space, Guvera can’t seem to get a hit. They were last in, also ran, bridesmaid-not-a-bride with a dismal history as an investment, burning through the mums ‘n’ dads. We’ve seen hype from AMMA before that never seemed to pan out. always big announcements with tiny results.
Read the article for more details on authentic growth metrics.
http://www.coelevate.com/essay.....tic-growth
Some startups pursue vanity metrics in hopes of attracting press coverage. They think that the pursuit of these metrics and press coverage will result in growth, but many companies that pursue them fail to realize that doing so means they will be sacrificing long-term goals for short-term gains. The problem of these in-authentic vanity metrics is exacerbated by the desire to look good, the difficulty of pursuing authentic growth metrics, and the press’s lack of knowledge. Instead, companies should be looking for authentic growth metrics to pursue.
It is clear that Guvera management does not have a clue. They have no track record of success. Everything would be revealed if someone did proper due diligence on the Guvera User data and financials. There are also massive issues with the Board and Governance.
@John On the contrary, Guvera and AMMA share managemenr, ,they certainly know what they are doing AMMA have done quite well out of Guvera, and they wont lose a penny if they go under.
Good journalism Steve Jones , keep digging below the surface as all is not as it seems , it’s called talk it up marketing with no substance .
I cant see them surviving the year.They have no clear strategy or leadership and are just launching all over the place hoping to strike lucky before the money runs out.The way they handled Blinkbox and its staff was very amateurish from what I can see.It seemed as if no-one knew what was going on.They bought a business in the UK then subsequently realised that they didn’t want to be in that market and exited causing a complete mess behind them.
Good luck Guvera ..easy to use, free streaming for consumers and unique and very cool branding opportunity for business. love it.
How does everyone know so much about this? Are you internal or is it a case of commenting on everything to appear intelligent? If you don’t like it steel up.