GRVTY Media acquired by Towerhill, raises funding to spice up development

Singapore-based media firm GRVTY Media introduced right this moment (July 29) that Towerhill — the funding car of Kiat Lim, who’s the son of billionaire Peter Lim — has acquired a majority stake of the corporate for an undisclosed quantity.

A part of the deal is a money injection, which will probably be used to gas the corporate’s development.

Based in April 2017, GRVTY Media is a inventive company and digital media group that homes Vulcan Put up, VP Label, Millennials of Singapore, and The Every day Ketchup. GRVTY Media additionally has a regional workplace at Malaysia which homes Vulcan Put up Malaysia and Uncover KL.

It was final valued at S$3.6 million in July 2017 — simply three months after its inception — during which it raised S$1 million from Spout Leisure Group (its shares have been later transferred to REAPRA).

What led to the acquisition?

Jacky Yap, co-founder of GRVTY Media, informed Vulcan Put up that by means of certainly one of his many tasks, Kiat obtained acquainted with the corporate and had an opportunity to raised perceive its media and company capabilities.

This opened the door to many different “synergistic” enterprise alternatives. Notably, Kiat sought GRVTY’s help within the numerous companies he’s concerned in, together with Thomson Medical Group, NFT group ARC, and digital soccer platform zujuGP. 

As enterprise relations and billings grew, Kiat initiated the dialog on a attainable acquisition.

“Our preliminary response was, ‘let’s simply see the place this goes’. We now have acquired quite a few different acquisition gives, however this one feels extra real due to our current relationship and friendship. The entire thing wrapped up actually rapidly – inside two weeks, they confirmed their broad choice to accumulate after which we began working by means of the numbers,” shared Johnathan Chua, co-founder of GRVTY. 

When requested why previous acquisition gives didn’t undergo, he cited two key causes: there have been no strategic advantages for GRVTY, they usually had acquired “lowball” gives. 

For this explicit acquisition deal, the founders made it very clear that the rationale they accepted the provide is as a result of they will see that it’ll assist them “take higher care” of their staff, which incorporates higher salaries, and bringing in additional senior hires who can contribute their wealth of expertise.

We see lots of strategic worth within the acquisition for numerous causes. Kiat is clearly well-connected, permitting us entry to new enterprise alternatives. With the extra funding, it permits us to scale sooner regardless of a attainable looming recession. I personally look as much as Kiat and he believes in our enterprise. Even earlier than the acquisition, we’ve had many conversations at size as to how Jacky and I can additional develop GRVTY Media, and now, I’m glad we’re going to develop it collectively.

– Johnathan Chua, co-founder of GRVTY Media

Individually, Kiat informed Vulcan Put up that he has witnessed GRVTY’s constant and excessive calibre of labor high quality and competence all through their working relationship. 

“Having labored with John, Jacky, Sarah and the workforce over the course of the previous 12 months, their work ethics strongly resonated with me. I’m proud to have them, the skills they’ve nurtured, and the manufacturers they’ve constructed to be part of our ecosystem and I sit up for taking the GRVTY model to the subsequent stage,” expressed Kiat.

​​It’s time to get “aggressive” with their enlargement plans

In keeping with the founders, GRVTY Media loved a robust begin — it was worthwhile from the primary month, they usually achieved near S$2 million in income of their first 12 months as companions again in 2017.

Nevertheless, when the COVID-19 pandemic struck, Jacky shared that GRVTY’s development slowed down as firms tightened their advertising budgets. Regardless, they counted themselves fortunate to outlive this difficult interval unscathed.

Though purchasers did cut back on spending, they didn’t lose any main accounts. 

“We didn’t lose cash and extra importantly, we didn’t lose anybody because of price range cuts. We even squeezed out a small bonus for our colleagues through the pandemic,” mentioned Johnathan. 

The truth is, GRVTY has bounced again stronger than ever this 12 months, as purchasers return with larger budgets. 

“This 12 months can be vital for us as we have been awarded tenders for each Complete of Authorities (WOG) inventive companies and media shopping for. It’s an enormous milestone, and we purpose to scale our workforce accordingly to raised service our purchasers,” mentioned Jacky. 

He added that whereas they’ve the power to accumulate and ramp up income, it’s the cost cycle that’s holding them again. 

As a result of nature of the company enterprise, after we shut a deal, we work on the marketing campaign for 3 to 12 months, after which we now have to attend one other three to 6 months for the cost to come back in. Whereas the corporate is financially wholesome and worthwhile, we now have excessive receivables so cashflow was a difficulty.

Now that we now have this newest injection of funds, we’re extra assured to scale the corporate — to rent extra, and do extra. We took this funding so we will have room to breathe and be barely extra aggressive [with our expansion plans].

– Jacky Yap, co-founder of GRVTY Media.

For the Malaysia workplace which is helmed by Sarah Enxhi and her workforce, the corporate has additionally been worthwhile and have been receiving robust help from manufacturers and advertisers.

All through the 2 years of motion management orders, GRVTY Media Malaysia has been in a position to improve our income, retain our abilities, give out bonuses and increments. That is because of our Vulcan Put up workforce right here in Malaysia who’s put within the work collectively to assist GRVTY thrive, and lots of supportive purchasers. I’m trying ahead to extra extra development and extra concepts come to life with Jacky, John and Kiat.

– Sarah Enxhi, co-founder of GRVTY Media Malaysia.

What’s subsequent for GRVTY?

Though Kiat owns the bulk stake within the firm, each founders are nonetheless very a lot accountable for the corporate and every thing will stay the identical operationally. 

The one mandate is that we develop the corporate and it needs to be worthwhile, however that’s a purpose we already share. … It’s crucial for us to be a sustainable firm so we don’t need to carry on elevating funds; that’s simply traumatic. [This acquisition] is unquestionably not an endgame for us, therefore why each founders are staying on.

We simply need to develop as a lot as attainable — we need to improve our income, maintain our staff completely satisfied, retain key abilities, and appeal to extra high abilities.

– Jacky Yap, co-founder of GRVTY Media

Transferring ahead, the corporate is trying to scale its groups and capabilities in its three enterprise divisions: media, company, and development hacking.

“With the funding, we additionally purpose to double our present headcount of 36 by subsequent 12 months,” mentioned Johnathan, including that he personally views GRVTY to be at ‘Part 3’ of its development stage. 

“We’re nonetheless a really younger firm, and we nonetheless have rather a lot to study and lots of room to develop. As the corporate matures, a bulk of the fund will probably be channeled into expertise acquisition. We’re trying to rent individuals we (the founders) and the remainder of our workforce can study from,” he summed up.

Featured Picture Credit score: GRVTY Media