Crowdmix is not the only new music company having a hard time of it. Australian ad-funded streaming service Guvera was blocked from going for an IPO in June by the Australian Securities Exchange and had to close its operations in a number of markets.
One market it was pinning its future on was India, but according to reports it is in “a state of chaos” there. Mumbrella has the story and puts it bluntly when it says Guvera is “haemorrhaging cash, unable to pay its bills and struggling to make its ad-funded model work”. It based its damning assessment of the company on documents from a May board meeting that were leaked. Senior staff members like global director of brand strategy, Max Hegerman, have left the company as it lurches forward and tries to crack the difficult nut of profitability. Mumbrella claims Guvera India reported a loss of $82,000 in April and income of just $11,352. Unbelievably, given all of that, the company reportedly has a revenue target of $20m. Mumbrella goes on to list details of non-payments and collapsing sponsorship deals. Given that India was being held up at a key market for the company – a huge population, a consumer emphasis on free, little in the way of international competitors – this is a pretty shocking bellwether for the performance of the company elsewhere.
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