Australian music streaming company Guvera is claiming a $1 billion valuation as it prepares for an IPO, according to a report in The Australian Financial Review.
Tony Boyd reports the eye-popping valuation “was revealed by its chief executive Darren Herft as he talks to bankers about raising $100 million in an initial public offering.”
Guvera company competes with streaming giants Spotify and Pandora and is currently serving 20 markets, with a strong presence in Asia, particularly India. Its main revenue is advertising, with users being able to listen free with ads or upgrade to a subscription.
Boyd’s article, however, notes that the “move towards a stock market listing says a lot about the level of optimism and chutzpah in the tech world considering the company lost $81 million last year on revenue of $1 million.”
The company explains that its high current costs are due to the expensive nature of licensing agreements with music distributors as the platform expands into various markets.