Two Guvera subsidiaries are now into voluntary administration

Two Guvera subsidiaries are now into voluntary administration

Black clouds on Guvera? It seems so: Guvera Limited, which has 12 subsidiaries, raised $180 million from 3,000 mostly self-managed superannuation funds, and earlier this month was hoping to raise another $100 million from an IPO before the ASX blocked the procedure, since some analysts have questioned whether the company will survive, given its large debts, low revenue, and a loss of $81 million last year.

Now two subsidiaries of the music streaming company (Guvera Australia and Guv Services, which with Guvera's business in international markets) have been placed into voluntary administration: professional services firm Deloitte has been appointed to lead an international restructure.

In a statement, Guvera said it would continue to operate in its home market of Australia, and would focus on high-growth, emerging markets, including India, which boasts 6.5 million users, and Indonesia. It is also looking at opportunities in the Philippines and Vietnam.

Parent company Guvera Limited will work with Deloitte to provide financial assistance for creditors, the company said. And Yemee Fernandes, Guvera's commercial director for the Asia-Pacific, explained:

As we look to focus primarily in key emerging markets, 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.