Australian firm AMMA Private Equity’s
long term support for local free music downloading and streaming company Guvera
has begun to reap rewards with the company making a strong debut in mobile market.
Through its large network of accounting practices and sophisticated investors AMMA is the major financial backer of Guvera and has to date raised in excess of $34 million to fund growth and development of the business.
Guvera recently launched Australia’s first unlimited mobile music streaming app. The popular app has achieved about 190,000 installs in total, averaging around 5,000 installs per day.
The app has resulted in a significant boost in overall users with the company now boasting about 500,000 subscribers. Gold Coast-based Guvera hopes to double the number of users by the end of 2013.
AMMA Head of Capital Andy Nematalla said delivery of the mobile app and the strong increase in subscriber numbers would not have been possible without AMMA’s support.
“Guvera has required significant capital over a number of years to achieve its current success and we look forward to the company continuing to grow well into the future,” he said. “The launch of the mobile app has exceeded our expectations and will form the cornerstone of a subscriber acquisition strategy moving forward.”
He said Guvera’s targeting of the illegal download market provided extraordinary capacity for growth, despite strong competition.
“Guvera taps into a potential market that is at least 100 times the size of the legal download market that is serviced by iTunes, Amazon, Pandora and all other existing music platforms,” he said.
AMMA recently launched a $1.5 million capital raising to fund a technology start-up that offers a breakthrough emergency voice and texting service to smartphone users who are out of credit. The start-up - OOCS Pty Ltd (Out of Credit Solutions) – will provide investors with the opportunity to participate in an early-stage business with global potential.
AMMA Chief Executive Officer Paul Jansz said the company’s product had already received support from the market.
“The AMMA team provides multi-stage capital raising and management expertise which ensures our investors’ funds are invested prudently and with the goal of providing a later stage exit with a significant premium,” he said.
“We have developed particular expertise in technology-based companies which provide a clear value-add for the end consumer. There is an increasing number of these start-up opportunities in Australia and we look forward to assisting them in their growth plans.”