Mdundo, an Africa-focused music streaming service, has reported a significant increase in revenue and monthly active users (MAUs). The company saw a 239% year-on-year (YoY) jump in revenue from paid subscriptions and a 23.2% YoY increase in MAUs. Subscription revenue now accounts for 35% of Mdundo’s total revenue, up from 18% the previous fiscal year. The company aims to meet its goal of achieving a positive EBITDA by 2025 and raising 40% of its revenue from subscriptions.
In addition to the surge in subscription revenue, Mdundo also experienced a 37% YoY increase in advertising revenue, bringing the total revenue to DKK 12.6 million. The company’s performance slightly trailed its guidance, mainly due to the weakening of the Nigerian naira and a decline in the Kenyan shilling. However, Mdundo remains on track to reach its target of 35 million MAUs by the end of the 2023-2024 fiscal year.
Mdundo is primarily focusing on five key markets: Nigeria, Kenya, Tanzania, Ghana, and South Africa, which collectively represent a population of 422 million people. The company has established partnerships with major telecom providers in these markets, giving it access to a customer base of 185 million people. Mdundo believes that Africa is undergoing a shift from illegal to legal music services and aims to provide a legal and easy alternative to the mass market in Africa. With a strong emphasis on delivering locally relevant service and content, Mdundo is confident that African artists will make up 15-20% of all music on the global charts in the future.