Guvera, a Gold Coast-based music streaming company, has raised $100 million to pursue further expansion into India.
The money is being raised from high net worth families, as well as AMMA Private Equity, which Guvera CEO Darren Herft founded.
The company claims it has 6.5 million in users in India after just one year. Thats almost half of Guvera’s 15 million total user base and much higher than the 1.4 million Australian subscribers, according to the Financial Review.
Guvera has struck deals with a number of Bollywood music labels, something other streaming services have been unable to do. This gives Guvera a huge edge in one of the largest addressable smartphone markets, which is rapidly developing.
“Part of the strategy to target emerging markets was about competition,” Darren Herft, told the Financial Review.
“Our competitors mostly weren’t in those markets and we’ve been able to get a stronger footprint … 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.”
Like other streaming services, Guvera operates both an ad-support free and premium, paid tiers. The company also monetises through branded playlists, which it attributes for part of its success in entering developing markets.
“Guvera has always known that emerging markets are not as willing to go for a paid service. So we just focus on the ad-funded and brand-funded model and let brands advertise natively on the platform while the users get free access,” Ananya Amin, head of business development in Asia for Guvera explained to the Indian Express earlier this month.
The company, launched in 2010, has made a series of losses to fund its expansion, and also wrote down the acquisition of British music streamer BlinkBox after it entered administration.
The company had previously raised $60 million after re-launching the business in 2013.
You can read more at the Financial Review.