GOLD Coast-based music streaming service Guvera is pulling out of the Australian market, where only a month ago it was boasting of strong growth.
It marks the latest upheaval for Guvera, which controversially raised $185 million from investors since 2008 on the back of an advertisement-driven music model. 
"Unfortunately, the time has come for Guvera to withdraw from the Australian market, this will come into effect in the following week," Guvera said in a memo to shareholders.
Guvera has been in financial strife with its proposed ASX listing blocked last month and it putting subsidiaries into administration, owing $18 million, and axing 70 staff.
The company had since hoped to raise $20 million from existing investors but has not answered queries about the success of this capital raising.
The memo said shutting the Australian market was due to changes in its product and a "strategic re-evaluation of the business".
"We have decided that in order to achieve sustainable and long-term goals, we will focus all efforts in key emerging countries, such as India and Indonesia," it said.
"Research shows that in these countries consumers simply can't and won't pay for the streaming of music and we feel we can return the greatest value to our shareholders." Guvera confirmed Darren Herft (pictured) had stepped down as chief executive officer. Mr Herft is still on Guvera's board and executive chairman of Guvera's main fundraising firm Amma, which had earned almost $20 million from Guvera. He is being temporarily replaced as CEO by co-founder Claes Loberg, who had "temporarily relocated to Indonesia and India to work closely with several key partners".
Guvera in a prospectus last month pointed to rising numbers of Australian users as an example of growth, saying it had more than 1.4 million registered users and almost 280,000 monthly active users. Its investment here included spending money on local promotions, such as television show The Voice and horse races.Industry sources said one factor in a shutdown of Australia could be the market lacked the revenue to cover high overheads.