An Australian streaming music startup is claiming a $1 billion valuation

Image: Guvera.com

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.”

Quite.

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.

Head over to the AFR for the full column >>

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