Singapore-centered media organization GRVTY Media declared now (July 29) that Towerhill — the financial commitment automobile of Kiat Lim, who is the son of billionaire Peter Lim — has acquired a the greater part stake of the business for an undisclosed volume.
Portion of the offer is a hard cash injection, which will be utilized to fuel the company’s development.
Started in April 2017, GRVTY Media is a innovative agency and electronic media team that properties Vulcan Write-up, VP Label, Millennials of Singapore, and The Day by day Ketchup. GRVTY Media also has a regional office at Malaysia which houses Vulcan Article Malaysia and Uncover KL.
It was last valued at S$3.6 million in July 2017 — just 3 months following its inception — in which it lifted S$1 million from Spout Amusement Group (its shares were later on transferred to REAPRA).
What led to the acquisition?
Jacky Yap, co-founder of GRVTY Media, instructed Vulcan Publish that by a single of his several tasks, Kiat acquired acquainted with the enterprise and had a opportunity to superior comprehend its media and agency capabilities.
This opened the doorway to numerous other “synergistic” business opportunities. Specially, Kiat sought GRVTY’s guidance in the numerous organizations he is involved in, such as Thomson Clinical Group, NFT neighborhood ARC, and digital football system zujuGP.
As business relations and billings grew, Kiat initiated the conversation on a possible acquisition.
“Our initial response was, ‘let’s just see the place this goes’. We have gained a variety of other acquisition offers, but this one feels much more real because of our current romantic relationship and friendship. The entire point wrapped up definitely speedily – inside two weeks, they confirmed their broad final decision to purchase and then we began operating by way of the numbers,” shared Johnathan Chua, co-founder of GRVTY.
When requested why earlier acquisition offers did not go as a result of, he cited two important factors: there had been no strategic advantages for GRVTY, and they experienced obtained “lowball” features.
For this certain acquisition deal, the founders manufactured it incredibly crystal clear that the cause they accepted the provide is because they can see that it will enable them “take improved care” of their personnel, which features superior salaries, and bringing in more senior hires who can lead their wealth of encounter.
We see a large amount of strategic benefit in the acquisition for different good reasons. Kiat is plainly well-linked, allowing for us accessibility to new business chances. With the more funding, it makes it possible for us to scale more quickly despite a possible looming economic downturn. I individually seem up to Kiat and he believes in our business. Even right before the acquisition, we have had numerous discussions at size as to how Jacky and I can even more expand GRVTY Media, and now, I’m glad we’re going to mature it collectively.
– Johnathan Chua, co-founder of GRVTY Media
Individually, Kiat instructed Vulcan Post that he has witnessed GRVTY’s steady and large calibre of function top quality and competence all through their doing the job romantic relationship.
“Having worked with John, Jacky, Sarah and the group above the course of the previous yr, their do the job ethics strongly resonated with me. I am proud to have them, the abilities they have nurtured, and the brands they’ve built to be a element of our ecosystem and I search forward to using the GRVTY brand name to the following degree,” expressed Kiat.
It is time to get “aggressive” with their growth plans
In accordance to the founders, GRVTY Media enjoyed a sturdy begin — it was financially rewarding from the to start with thirty day period, and they accomplished shut to S$2 million in earnings in their first year as companions back again in 2017.
Even so, when the COVID-19 pandemic struck, Jacky shared that GRVTY’s growth slowed down as companies tightened their marketing budgets. No matter, they counted themselves blessed to survive this hard period unscathed.
Though shoppers did scale back again on investing, they did not reduce any key accounts.
“We did not shed cash and much more importantly, we did not eliminate everyone thanks to spending budget cuts. We even squeezed out a tiny reward for our colleagues all through the pandemic,” explained Johnathan.
In simple fact, GRVTY has bounced back again stronger than ever this year, as clientele return with greater budgets.
“This 12 months is also vital for us as we were being awarded tenders for both of those Complete of Federal government (WOG) creative companies and media purchasing. It’s a huge milestone, and we purpose to scale our staff accordingly to better support our purchasers,” mentioned Jacky.
He included that though they have the capacity to obtain and ramp up revenue, it is the payment cycle that’s keeping them again.
Owing to the character of the company business, when we shut a offer, we perform on the campaign for three to twelve months, and then we have to wait an additional 3 to six months for the payment to arrive in. When the organization is financially wholesome and successful, we have large receivables so cashflow was an difficulty.
Now that we have this most recent injection of cash, we are far more confident to scale the company — to employ far more, and do extra. We took this investment so we can have space to breathe and be a little bit extra aggressive [with our expansion plans].
– Jacky Yap, co-founder of GRVTY Media.
For the Malaysia business which is helmed by Sarah Enxhi and her workforce, the firm has also been profitable and have been getting solid support from brands and advertisers.
In the course of the two many years of movement manage orders, GRVTY Media Malaysia has been capable to boost our earnings, retain our talents, give out bonuses and increments. This is many thanks to our Vulcan Write-up group in this article in Malaysia who’s put in the operate with each other to support GRVTY prosper, and several supportive purchasers. I’m looking ahead to far more much more development and extra ideas occur to existence with Jacky, John and Kiat.
– Sarah Enxhi, co-founder of GRVTY Media Malaysia.
What’s next for GRVTY?
Although Kiat owns the bulk stake in the business, both of those founders are however very considerably in management of the corporation and almost everything will keep on being the similar operationally.
The only mandate is that we grow the company and it has to be financially rewarding, but which is a target we presently share. … It’s really essential for us to be a sustainable enterprise so we really do not have to preserve on boosting funds which is just demanding. [This acquisition] is surely not an endgame for us, that’s why why both equally founders are being on.
We just want to develop as a lot as possible — we want to maximize our earnings, preserve our workforce content, retain crucial abilities, and entice a lot more leading abilities.
– Jacky Yap, co-founder of GRVTY Media
Transferring ahead, the organization is hunting to scale its groups and capabilities in its 3 business divisions: media, company, and progress hacking.
“With the funding, we also purpose to double our latest headcount of 36 by upcoming 12 months,” claimed Johnathan, incorporating that he individually sights GRVTY to be at ‘Phase 3’ of its growth stage.
“We are still a quite youthful enterprise, and we continue to have a good deal to understand and a good deal of home to mature. As the business matures, a bulk of the fund will be channeled into talent acquisition. We’re seeking to retain the services of individuals we (the founders) and the rest of our staff can understand from,” he summed up.
Highlighted Picture Credit: GRVTY Media