Brief: Music streaming startup Guvera ceases operations

Photo credit: Guvera.

The news:

• Australian music streaming service Guvera announced Friday that it has ceased all operations.
• The Gold Coast-based startup had mainly targeted Southeast Asian markets, having launched a subscription service in Indonesia and freemium services in Hong Kong, Malaysia, Singapore, and the Philippines.

Why it matters:

• Between 2008 and 2016, Guvera raised US$137.6 million from over 3,000 “sophisticated investors,” which were mainly privately managed superannuation funds, according to The Australian Financial Review.
• In June 2016, the Australian Securities Exchange (ASX) blocked a controversial IPO bid by Guvera, which valued the startup at US$967 million. In December one of Guvera’s shareholders sought an insolvency order against the company, claiming debt of US$1.3 million.
• Guvera’s shutdown leaves the Southeast Asian music streaming space to a host of local players, as well as global giant Spotify, which launched in Indonesia in March last year.

Source: Australian Financial Review

Converted from Australian dollars. Rate: US$1 = A$1.34.