Just days after Korean mobile firm Yello Mobile acquired blogger advertising network Gushcloud for at least S$10 million, it looks like Nuffnang is doing some fundraising of its own by listing on the ASX. It’s said to have raised A$7 million out of the A$10 million.
Some interesting stuff to chew on:
- it made A$11 million in revenue last year, which seems to be an order of magnitude higher than Gushcloud.
- ChurpChurp, described as “an agency that connects brands to prominent Twitter users who are paid to send out positive tweets about a brand’s products,” brought in A$2.5 million.
- Nuffnang has a new business called Reelity, which creates viral videos to discuss products. That made only a couple of hundred thousands.
- The team has about 200 people, but the funds will go towards growing it.
- Money will go towards expanding into existing markets: Australia, Malaysia, Singapore, the Philippines, Thailand, China and the United Kingdom.
- It’ll also be used for new markets like Vietnam, Indonesia and Taiwan.
The founder also said some interesting stuff no doubt aimed at Gushcloud: “We don’t have a lot of organic competitors right now as we’ve gotten good at stifling our competition. We book our top bloggers and influencers onto long contracts, which means all that are available are number two bloggers and not worth it.”
The timing of this release is interesting. Probably timed soon after the Gushcloud announcement to take away the wind in their sails?
The stats does seem to justify his claim that Nuffnang is the real game in town. ASX seems like a really logical place for many Asian startups to list these days (migme, Fatfish, Animoca). In any case, once they list, it looks like Xiaxue will be able to cash out soon (she owns some shares in Nuffnang I believe)? There’ll likely be some kind of lock-in period before Nuffnang shareholders can cash out though, so she’ll have to wait for a while for the money to flow into the bank.
Any thoughts on the listing? I don’t really see the prospectus online though. Does anyone have the link?
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