Kenyan music streaming startup Mdundo reports 290% user growth since 2020 IPO

Mdundo, a Kenyan music streaming startup, has seen a 295 percent increase in users since its 2020 IPO. This almost takes it to 20 million.

In Kenya, it was launched 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 List its shares on the Nasdaq First North Growth Market DenmarkFollowing an oversubscribed presale period, DKK40 million was raised (US$6.4 Million) to strengthen its leadership position in the pan African music market.

Mdundo’s monthly active users have increased by 290 percent, from 5 million to nearly 20 million. Revenue has also grown by around 340 percent over that time. 

The company has now announced its “2025 strategy”, saying it expects 50 million users and to be EBITDA positive by 2025. Mdundo is also focusing on delivering value per user via paid telco products. Last year, Mdundo announced partnerships. Vodacom in TanzaniaMTN in Nigeria, Airtel in Nigeria, and Airtel 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.”

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