RealTime IT News

Australian Online Music Retailer Chaos Adds Investors

Online music retailer Chaos Music Market has received separate second round capital injections totalling AUS$3.1 million (US$2 million) in the past week from Australian investors.

Following Perth-based FTR Holdings' investment of AUS$1.3 million (US$850,000) last week, an injection of the same amount has been made by a consortium made up of Australian companies SEL, Allco Finance and Issues and Images.

FTR and the consortium each now hold a 13 percent stake in Chaos. The remaining stock in the company is held by founder and CEO Rob Appel, OzEmail Internet, staff holdings and private investors -- the last group having also recently added $500,000 in investment.

FTR made a simultaneous announcement that some of the major shareholders of OzEmail had invested in FTR, including Sean Howard, Trevor Kennedy, Malcolm Turnbull and Neville Wran.

The news comes soon after U.S. music giant CDNow revealed it was going to launch into Australia in the near future, headed by former Netscape Australia managing director Clive Mayhew-Begg.

"This investment strengthens the position of ChaosMusic as the leading local e-tailer of music over foreign online juggernauts," said Appel. "It gives us the power to achieve our goal of promoting Australian music to the world and bringing the greatest choice of music to Australians."

"This injection of capital from the innovators of Internet technology shows the belief and confidence in our established online retailing presence."