Singapore-based media firm GRVTY Media introduced right this moment (July 29) that Towerhill — the funding automobile 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 likely be used to gasoline the corporate’s growth.

Based in April 2017, GRVTY Media is a inventive company and digital media group that homes Vulcan Submit, VP Label, Millennials of Singapore, and The Day by day Ketchup. GRVTY Media additionally has a regional workplace at Malaysia which homes Vulcan Submit 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 Submit that via one in all his many tasks, Kiat bought acquainted with the corporate and had an opportunity to higher 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 neighborhood 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’. Now we have acquired a variety of different acquisition presents, however this one feels extra real due to our current relationship and friendship. The entire thing wrapped up actually shortly – inside two weeks, they confirmed their broad resolution to purchase after which we began working via the numbers,” shared Johnathan Chua, co-founder of GRVTY. 

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

For this specific acquisition deal, the founders made it very clear that the rationale they accepted the supply is as a result of they will see that it’s going to 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 quite a lot 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 search for to 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 Submit 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 crew over the course of the previous yr, their work ethics strongly resonated with me. I’m proud to have them, the abilities they’ve nurtured, and the manufacturers they’ve constructed to be part of our ecosystem and I look ahead to taking the GRVTY model to the following stage,” expressed Kiat.

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

In accordance to the founders, GRVTY Media loved a powerful begin — it was worthwhile from the primary month, they usually achieved shut to S$2 million in income of their first yr as companions again in 2017.

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

Though shoppers 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 due to finances cuts. We even squeezed out a small bonus for our colleagues through the pandemic,” stated Johnathan. 

In reality, GRVTY has bounced again stronger than ever this yr, as shoppers return with larger budgets. 

“This yr can also be vital for us as we have been awarded tenders for each Entire of Authorities (WOG) inventive companies and media shopping for. It’s an enormous milestone, and we goal to scale our crew accordingly to higher service our shoppers,” stated Jacky. 

He added that whereas they’ve the flexibility to purchase and ramp up income, it’s the fee cycle that’s holding them again. 

Due to the character of the company enterprise, after we shut a deal, we work on the marketing campaign for 3 to twelve months, after which we have now to wait one other three to six months for the fee to are available in. Whereas the corporate is financially wholesome and worthwhile, we have now excessive receivables so cashflow was a problem.

Now that we have now 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 crew, the corporate has additionally been worthwhile and have been receiving sturdy 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 thanks to our Vulcan Submit crew right here in Malaysia who’s put within the work collectively to assist GRVTY thrive, and lots of supportive shoppers. I’m trying ahead to extra extra growth 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 all the pieces will stay the identical operationally. 

The one mandate is that we develop the corporate and it has to be worthwhile, however that’s a objective we already share. … It’s essential for us to be a sustainable firm so we don’t have to carry on elevating funds; that’s simply worrying. [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 wish to improve our income, preserve our staff joyful, retain key abilities, and appeal to extra prime 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 growth hacking.

“With the funding, we additionally goal to double our present headcount of 36 by subsequent yr,” stated Johnathan, including that he personally views GRVTY to be at ‘Part 3’ of its growth stage. 

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

Featured Picture Credit score: GRVTY Media