Australian music streaming service Guvera have raised AU$100 million ($72.2m) to fund their current expansion in India.
Guvera have confirmed a “pre-IPO round” raised AU$100 million to continue funding their expansion into India where Guvera claim they have 6.5 million users, for a total of 15 million users worldwide. This is a vast improvement from earlier this year in April when Guvera claimed to have 10 million users globally, an already impressive number for the relatively unknown streaming service based in Australia.
Guvera received funding from private investors in Australia as well as a private-equity group AMMA, co-founded by Guvera’s CEO Darren Herft. Herft said: “A number of wealthy Australian families have been looking for new opportunities in the tech and digital space… but more specifically in mobile and digital. Guvera presents an opportunity in this space, and it’s growing quickly in Asia.”
A date for their upcoming IPO has yet to be announced as Herft says they are undecided whether to list their Initial Public Offering on the Australian Securities Exchange or the US’ Nasdaq. However despite their ongoing success and enthusiastic funders the company revealed in June this year that it had lost AU$81.1 million in the past financial year, an increase on a loss of AU$29.4 million the year before. This all comes after Deezer recently pulled out of their proposed IPO due to “tough market conditions”.
Guvera’s appeal, particularly in India, is their focus on bringing localised content to appeal to users in that country. For example after launching in India a year ago Guvera have been focussed on securing rights to the most popular Bollywood music, something Spotify and Apple have so far missed the ball on.
On their offering of content that suits the country the service is being used in, Herft said: “Part of the strategy to target emerging markets was about competition. We’re the only label in the world that has label agreements with labels like Sony, on top of the biggest Bollywood label in India as well.”
Since launching in 2009 as a simple MP3 download website Guvera has evolved into a playlist-driven streaming service that is available in an ad-supported, free format or a paid, ad-free subscription much like Spotify. Over the past year Guvera have launched in India, Indonesia, Hong Kong, Malaysia, the Philippines and Singapore and has been available in the US for over 5 years.