Gushcloud founders pay $8m to buy back startup 3 years after selling it

The Gushcloud management team / Photo credit: Gushcloud

The co-founders of Gushcloud International, Althea Lim and Vincent Ha, have regained control of the startup from South Korean shareholder Yello Digital Marketing Global (YDMG). They’ve bought back YDMG’s 62 percent stake for US$8.2 million.

In a statement, the co-founders said they are grateful for the last three years with YDMG, which has helped Gushcloud break into key territories. However, they felt the time was right to buy back the South Korean investor’s shares.

“As co-founders of Gushcloud International, we see the company evolving beyond influencer marketing services so we can build out a sustainable future for influencers and content creators,” the pair said.

“To play an important role within the media and entertainment industry, and to build out what this ecosystem looks like, we believe we had to take back control of steering the company forward and to onboard more strategic partners and investors.”

Ha and Lim, however, added that Gushcloud will “remain close partners” with YDMG.

Tech in Asia has reached out to the Gushcloud team for comment on how they funded the buyback, and their future plans.

See: Singapore’s Gushcloud gets acquired. Is it really a win for the company?

YDMG acquired the Singapore-based influencer marketing startup in May 2015. The two companies hoped the deal would help expand both their footprints in Southeast Asia.

Across the last 18 months, Gushcloud has been reorganized into three business units – Gushcloud Marketing Group, Gushcloud Talent Agency, and Gushcloud Entertainment Group – in line with its diversification strategy. In addition to Singapore, the company operates out of eight offices across Indonesia, Japan, Malaysia, South Korea, Thailand, Vietnam, the Philippines, and the US.

Gushcloud received US$3 million in a strategic investment from South Korean “K-Wave” media giant YG Entertainment in October last year.