African music streaming service Mdundo has experienced a significant increase in revenue and monthly active users (MAUs). In its annual report, Mdundo revealed a 239% year-on-year surge in revenue from paid subscriptions, with subscription revenue now accounting for 35% of the company’s total revenue. This growth has put Mdundo on track to achieve positive earnings before interest, taxes, depreciation, and amortization (EBITDA) by 2025. Additionally, Mdundo reported a 23.2% year-on-year increase in MAUs, reaching 26.6 million by the end of June. The company aims to further increase its MAUs to 35 million by the end of the 2023-2024 fiscal year.
Mdundo also experienced growth in advertising revenue, which increased by 37% year-on-year, contributing to a 75% year-on-year growth in total revenue. However, the company’s revenue growth was slightly impacted by the devaluation of the Nigerian naira and the decline in the Kenyan shilling. Despite this, Mdundo remains focused on its goal of becoming the leading pan-African music service and aims to attract 50 million unique monthly active users by mid-2025. It continues to focus on key markets such as Nigeria, Kenya, Tanzania, Ghana, and South Africa, which offer substantial growth opportunities due to high internet penetration rates and economic development.
To tap into the growing market, Mdundo has partnered with major telecom providers, giving it access to a customer base of 185 million people. These partnerships not only expand Mdundo’s reach but also address the low usage of payment cards in Africa. Mdundo believes that Africa is undergoing a shift from illegal to legal music services, similar to what was observed in the Western world a decade ago. The company is confident that in the future, 15%-20% of all music on the global charts will be by African artists, as the industry undergoes massive democratization.
In conclusion, Mdundo’s revenue from paid subscriptions and its number of monthly active users have witnessed significant growth. This, coupled with partnerships and a focus on key African markets, puts Mdundo in a strong position to capitalize on the continent’s growing digital music consumption and become a leading pan-African music service.