Australian music streaming service Guvera says its expansion into the booming mobile phone market of India gives it an edge against the likes of Spotify. Guvera is planning to list on the share market as it works to cement its spot in the booming, yet highly competitive digital music industry, which has had several high profile casualties in recent months.
Guvera has more than 14 million users across 10 countries, with half of those in India,the first international streaming platform to enter the digital music market. Guvera holds registered patents in its major markets and has music rights with more than 80 music labels, aggregators and rights bodies around the world, providing Guvera with access to a catalogue of more than 30 million songs
Its customer base in India jumped from 1.7 million in January 2015 to seven million just four months later. Guvera’s revenue comes primarily from advertisers, as its main product is a free music service that includes targeted branded content. It said India has the fastest growing mobile advertising volumes in the world, giving the company plenty of scope to increase revenue.
“Guvera is the best positioned music company to take advantage of this mobile advertising explosion,” chairman Phil Quartararo (aka Phil Q and former CEO of Virgin Records USA and Warner Bros Records) said in the company’s prospectus.
Brand-Funded Music Streaming
Guvera is an Australia-based music streaming and entertainment company that at its core is a digital mobile advertising platform. We operate at the intersection of the digital music and the advertising industries, with a business focus in emerging markets. Our vision is to deliver the most enjoyable experience to our listeners while offering a genuinely engaging advertising platform for brands, ensuring that artists and rights holders are fairly rewarded for the work that they produce.
Guvera was established in response to the mass illegal consumption of online music, by providing registered users with a legal way to access music. At the same time, the advertising industry was going through a shift from traditional media to digital platforms. Primarily focused on mobile digital advertising, today Guvera’s revenue model replicates that of a major social media company.
Supported by international patents that accommodate Guvera’s brand-funded model, we believe that we are well-placed to expand, particularly in emerging markets where we believe people prefer to access music for free. Our presence in emerging markets is exemplified by India, which with more than six million registered users, provides Guvera penetration in what we regard to be one of the world’s most exciting economies.
In 2016, Guvera has been: • awarded Winner of Gold Coast ‘Mayor’s Innovation GC Award’; • nominated for Best Streaming Audio in The Webby and The Webby People’s Voice Award, which are presented by the International Academy of Digital Arts and Sciences to honour excellence in the internet; • shortlisted for Best Mobile Music App at the Global Mobile (Glomo) Awards; • placed as Best in Category in the Mobile Apps – Entertainment category for the Horizon Interactive Awards; and • shortlisted in the Entertainment and Leisure category for the Global Design100 Awards
Guvera plans to raise up to $100 million for further expansion in India, plus other markets including Indonesia, the Philippines and Australia, with its share market float. The Gold Coast based company is offering 80 million shares at $1.00 each, with an option to accept demand for an additional 20 million shares if oversubscribed.
The company expects to list in mid-July, with a market value of about $588 million.
FestPop Editorial Team