Kenyan music streaming startup Mdundo has seen 290 per cent growth in users since its 2020 IPO, almost taking it to the 20 million mark.
Launched in Kenya in 2013, Mdundo provides access to all the continent’s favourite music to users in 15 countries in Sub-Saharan Africa, with millions monthly downloads and streams via its website and app.
The company listed its shares on the Nasdaq First North Growth Market Denmark in 2020 following an oversubscribed pre-sale period that raised DKK40 million (US$6.4 million), in a bid to solidify its leading position in the pan-African music market.
Since then, Mdundo has grown the number of monthly active users by 290 per cent from five million to almost 20 million, with revenue growing by approximately 340 per cent over the same period.
The company has now announced its “2025 strategy”, saying it expects 50 million users and to be EBITDA positive by 2025. Mdundo also has an increased focus on driving value per user through paid telco products, having last year Mdundo announced partnerships with Vodacom in Tanzania as well as MTN and Airtel in Nigeria. The partnerships enable the telco customers to subscribe to Mdundo’s premium products directly. Mdundo is also planning to focus more deeply on the five biggest music markets in Sub-Saharan Africa – Kenya, Tanzania, Nigeria, Ghana and South Africa.
“Our growth strategy the last two years has paid off with strong user growth and consistent revenue growth across our core markets. Looking forward towards 2025 we will continue focusing on aggressive growth in users and revenue but with an increased focus on driving value per user and we expect a positive EBITDA by 2025,” said Mdundo CEO Martin Nielsen.
“Our focus will remain on user and revenue growth and we expect to grow our revenues by approximately 100 per cent from this year to the year ending June 2023. The heavy focus on growth will show in the bottom-line again next year as a result of continuous investments in acquisition of paying subscribers and brand building in the forthcoming year.”