Singapore-based media organization GRVTY Media declared nowadays (July 29) that Towerhill — the investment automobile of Kiat Lim, who is the son of billionaire Peter Lim — has obtained a majority stake of the firm for an undisclosed volume.
Component of the deal is a income injection, which will be utilized to gas the company’s progress.
Founded in April 2017, GRVTY Media is a innovative company and electronic media team that houses Vulcan Put up, VP Label, Millennials of Singapore, and The Each day Ketchup. GRVTY Media also has a regional place of work at Malaysia which houses Vulcan Post Malaysia and Learn KL.
It was last valued at S$3.6 million in July 2017 — just a few months just after its inception — in which it elevated S$1 million from Spout Entertainment Group (its shares were later transferred to REAPRA).
What led to the acquisition?
Jacky Yap, co-founder of GRVTY Media, advised Vulcan Put up that by way of one of his a lot of tasks, Kiat obtained acquainted with the business and had a opportunity to superior understand its media and agency capabilities.
This opened the door to lots of other “synergistic” business opportunities. Especially, Kiat sought GRVTY’s assistance in the numerous firms he is included in, together with Thomson Health-related Group, NFT neighborhood ARC, and electronic football system zujuGP.
As business relations and billings grew, Kiat initiated the discussion on a achievable acquisition.
“Our initial response was, ‘let’s just see where this goes’. We have been given a amount of other acquisition gives, but this one particular feels a lot more legitimate simply because of our present relationship and friendship. The entire matter wrapped up actually quickly – in two months, they confirmed their wide selection to acquire and then we started off performing as a result of the numbers,” shared Johnathan Chua, co-founder of GRVTY.
When asked why past acquisition offers didn’t go by means of, he cited two crucial explanations: there ended up no strategic positive aspects for GRVTY, and they had been given “lowball” provides.
For this individual acquisition deal, the founders created it very apparent that the purpose they accepted the give is simply because they can see that it will enable them “take improved care” of their workforce, which contains far better salaries, and bringing in more senior hires who can lead their wealth of encounter.
We see a ton of strategic worth in the acquisition for numerous causes. Kiat is clearly properly-connected, allowing for us access to new business opportunities. With the extra funding, it allows us to scale speedier despite a achievable looming recession. I individually look up to Kiat and he thinks in our business. Even before the acquisition, we have had many conversations at size as to how Jacky and I can additional expand GRVTY Media, and now, I’m glad we’re going to increase it together.
– Johnathan Chua, co-founder of GRVTY Media
Individually, Kiat told Vulcan Publish that he has witnessed GRVTY’s consistent and superior calibre of function good quality and competence all over their doing work marriage.
“Having labored with John, Jacky, Sarah and the crew in excess of the program of the earlier year, their get the job done ethics strongly resonated with me. I am happy to have them, the abilities they have nurtured, and the models they’ve developed to be a element of our ecosystem and I search ahead to using the GRVTY manufacturer to the future stage,” expressed Kiat.
It’s time to get “aggressive” with their expansion ideas
According to the founders, GRVTY Media loved a robust start — it was rewarding from the 1st month, and they achieved close to S$2 million in income in their very first year as companions back again in 2017.
Nonetheless, when the COVID-19 pandemic struck, Jacky shared that GRVTY’s development slowed down as businesses tightened their marketing budgets. Irrespective, they counted themselves lucky to survive this demanding period unscathed.
Even though purchasers did scale back on paying out, they did not drop any big accounts.
“We did not shed cash and a lot more importantly, we did not lose anybody thanks to budget cuts. We even squeezed out a modest reward for our colleagues through the pandemic,” said Johnathan.
In actuality, GRVTY has bounced back more powerful than ever this yr, as clientele return with greater budgets.
“This 12 months is also vital for us as we were being awarded tenders for both of those Whole of Authorities (WOG) artistic products and services and media obtaining. It’s a huge milestone, and we aim to scale our group accordingly to far better company our consumers,” reported Jacky.
He additional that when they have the means to acquire and ramp up income, it is the payment cycle that is holding them back.
Due to the nature of the agency business, when we shut a deal, we do the job on the marketing campaign for 3 to twelve months, and then we have to wait around a different three to six months for the payment to appear in. Even though the corporation is economically healthy and financially rewarding, we have substantial receivables so cashflow was an issue.
Now that we have this most current injection of funds, we are far more confident to scale the organization — to employ the service of a lot more, and do additional. We took this investment so we can have room to breathe and be slightly far more aggressive [with our expansion plans].
– Jacky Yap, co-founder of GRVTY Media.
For the Malaysia place of work which is helmed by Sarah Enxhi and her group, the enterprise has also been worthwhile and have been getting powerful aid from manufacturers and advertisers.
During the two years of motion control orders, GRVTY Media Malaysia has been able to enhance our earnings, retain our talents, give out bonuses and increments. This is thanks to our Vulcan Submit team below in Malaysia who’s set in the operate alongside one another to help GRVTY thrive, and many supportive clientele. I’m wanting forward to more extra expansion and more strategies appear to existence with Jacky, John and Kiat.
– Sarah Enxhi, co-founder of GRVTY Media Malaysia.
What is next for GRVTY?
Even though Kiat owns the the vast majority stake in the corporation, the two founders are nevertheless quite a great deal in manage of the company and anything will continue to be the similar operationally.
The only mandate is that we grow the business and it has to be profitable, but that is a purpose we already share. … It is very crucial for us to be a sustainable corporation so we do not have to retain on increasing cash that’s just stress filled. [This acquisition] is certainly not an endgame for us, as a result why both of those founders are keeping on.
We just want to grow as much as achievable — we want to enhance our earnings, retain our staff members content, retain key abilities, and attract much more major skills.
– Jacky Yap, co-founder of GRVTY Media
Shifting forward, the business is searching to scale its teams and abilities in its 3 business divisions: media, company, and expansion hacking.
“With the funding, we also intention to double our existing headcount of 36 by subsequent yr,” explained Johnathan, incorporating that he personally sights GRVTY to be at ‘Phase 3’ of its growth stage.
“We are still a pretty younger business, and we nevertheless have a lot to learn and a ton of area to improve. As the business matures, a bulk of the fund will be channeled into expertise acquisition. We’re looking to hire people today we (the founders) and the relaxation of our group can learn from,” he summed up.
Showcased Graphic Credit: GRVTY Media