Guvera subsidiaries placed into voluntary administration as parent company continues to operate

Struggling music streaming company Guvera has placed two of its subsidiaries into voluntary administration following the decision by the Australian Securities Exchange not to list the company.

The decision to place the subsidiaries – Guvera Australia and Guv Services which deal the Guvera business in international markets – comes after the ASX moved last week to block a float of the company planned for this week.

GuveraAs a result of the ASX decision Guvera undertook a strategic review of its business leading to the decision to focus on the emerging markets.

The intended IPO had been widely panned by tech industry leaders including Mike Cannon-Brooks, one of the founders of Atlassian, who questioned the steep valuation for a company that made revenues of just $1.2m last year and lost $81m in the same time period.

Atlassian founder Milke Cannon-Brooks lambasted the Guvera prospectus

Atlassian founder Milke Cannon-Brooks lambasted the Guvera prospectus

Deloitte Restructing has been appointed to manage the administration of the two companies while Guvera Limited continues to trade.

The streaming company has said that it “intends to continue to operate in its home market of Australia” and in the short term will”dedicate its focus” to India, Indonesia and the United Arab Emirates with a longer term objective of investigating opportunities in the Phillipines and Vietnam.

Yemee Fernandes, commercial director APAC at Guvera, said: “What sets Guvera apart from its competitors is the ability to offer brands a patented brand-funded model of entertainment that uses the power of music to connect brands with consumers.

“Our Brand Channel advertising solution helps brands engage with their target audience on a more meaningful level, which in turn provides Guvera’s users with a wide variety of music and editorial content that they can enjoy in a minimally-disruptive way.

“Since Guvera’s inception, we have been brand-funded and free, because, we understand that more than 90% of the music streamers in the world do not want to pay for music.

“As we look to focus primarily in key emerging markets, we take with us a highly scalable platform that caters to brands as much as it does for music lovers, artists and rights holders.

“We offer our product in markets where smartphone adoption is growing rapidly alongside digital mobile advertising spends.”

Guvera Limited, which has 12 subsidiaries, sought to list on the ASX earlier this month as part of an $80m capital fundraising.


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