Guvera Australia Pty Ltd enters administration
Guvera Australia Pty Ltd and Guv Services Pty Ltd have entered voluntary administration, effective today.
The two companies relate to international aspects of the Gold Coast-based global platform and are two of 12 subsidiaries under parent company Guvera Limited.
The decision is a direct result of the move by the Australian Stock Exchange (ASX) to block Guvera’s planned IPOearlier this month.
Labeled a ‘strategic review’ by Guvera Limited, the platform has appointed Deloitte to lead an international restructure. Deloitte hopes to provide “financial assistance for Creditors” of Guvera Australia and Guv Services.
The restructure is expected to follow through with the strategic plan outlined in its failed IPO prospectus, where Guvera indictated it would scale back from 20 markets to 10, axing the 10 markets that were deemed costly to run and weren’t delivering in user numbers.
According to Guvera’s statement, it intends to continue to operate in its home market of Australia. However, the focus is now on its emerging markets for the short term. This includes India, where it boasts 6 million users, Indonesia as well as the United Arab Emirates (UAE), with a longer term objective for the Philippines and Vietnam.
Yemee Fernandes, commercial director APAC at Guvera, said in a statement: “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.”
TMN undersrtands the next announcement from Guvera Limited will be regarding a capital injection.
Guvera – which reported multi-million dollar losses for the ‘14 and ‘15 financial year – was hoping to raise between $50 million and $100 million in an IPO, at a market valuation of $1.3 billion, with a $1 per share offer for potential investors.
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