Mdundo, an Africa-focused music streaming service, has experienced significant growth in revenue and user base. In its annual report for the fiscal year ended June 30, 2023, Mdundo reported a 239% year-on-year jump in revenue from paid subscriptions and a 23.2% year-on-year increase in monthly active users (MAUs). Subscription revenue now accounts for 35% of the company’s total revenue, up from 18% in the previous fiscal year. The company aims to raise 40% of its revenue from subscriptions going forward, and it is on track to meet its goal of achieving a positive EBITDA by 2025.
In addition to the surge in subscription revenue, Mdundo also saw growth in advertising revenue, which increased by 37% year-on-year. This brought the company’s total revenue to DKK 12.6 million, marking a 75% year-on-year increase. However, revenue growth was affected by the weakening of the Nigerian naira and a decline in the Kenyan shilling. Despite this, Mdundo’s total MAUs exceeded expectations, reaching 26.6 million at the end of June, and the company aims to reach 35 million MAUs by the end of the 2023-2024 fiscal year.
Mdundo is focused on five key markets in Africa: Nigeria, Kenya, Tanzania, Ghana, and South Africa. These markets offer substantial growth opportunities due to high internet penetration rates and robust economic development. The company has established partnerships with major telecom providers to tap into a customer base of 185 million people. Mdundo believes that Africa is going through a transition from illegal to legal music services, and it aims to provide a legal and easy alternative for the mass market in Africa. With a strong emphasis on delivering locally relevant service and content, Mdundo envisions African artists representing 15-20% of all music on the global charts in the future.