A leading African music platform projects a significant growth in its monthly active users, increasing from 26 million to 35 million year-on-year.
Mdundo.com’s Guidance for Financial Year 2023/2024 reflects an astounding seven-fold increase in its monthly active users since holding an initial public offering (IPO) in 2020.
Consequently, the company expects to achieve a substantial increase in annual revenue with projections hovering between $2.5m and $3m.
The guidance reflects an 11 to 13-fold increase in yearly revenue since the 2020 IPO. Its financial projections, the guidance states, showcase Mdundo.com’s steadfast commitment to sustainable growth and its ability to capitalise on the tremendous potential of the music industry in Africa.
Mdundo.com says it remains on track to achieve its ambitious 2025 strategy, which centres on reaching 50 million monthly active users and achieving positive earnings before interest, taxes, depreciation, and amortisation or EBITDA operation.
According to the guidance, the company will focus on Nigeria, Kenya, Tanzania, Ghana, and South Africa because these key markets encompass a combined population of 422 million people—approximately 35 percent of sub-Saharan Africa’s population.
“They (key markets) offer substantial growth opportunities due to high internet penetration rates and robust economic development,” the company says, adding: “In March 2023, these markets accounted for 16.6 million of Mdundo’s 24.5 million monthly active users, with the remaining 30 percent distributed across secondary focus markets.”
The company will focus on driving value per user through telco and premium products.
To this end, Mdundo.com has established music packages in collaboration with prominent telecommunications providers, including Vodacom in Tanzania, Airtel in Nigeria, and MTN in Nigeria, Ghana, and South Africa.
According to the company, these partnerships collectively reach an extensive customer base of 185 million people, enabling Mdundo.com to address the low penetration of payment cards in Africa and deliver enhanced value to its users.
The company has previously announced that revenue from these partnerships accounted for 33 percent of the total revenue in the first half of the financial year 2022/2023, showing a 600 percent increase on the revenue line from the same period the previous year.
The company will also focus on delivering locally relevant service and content. It places a strong emphasis on providing locally-relevant service and content, acknowledging the significance of cultural diversity and local preferences.
The platform curates a diverse range of music from various genres and local artists, ensuring an engaging and relevant experience for its users.
The company has previously announced that approximately 80 percent of all music consumed within the focus markets is African catalog and that the service is approaching 500,000 African songs directly uploaded to the service by +140,000 African creators.
“These expectations signal a significant milestone in Mdundo.com’s growth journey, underscoring our consistent upward trajectory. With an anticipated 35 percent growth in monthly active users, we are set to significantly extend our influence in key African markets,” Martin Møller Nielsen, the Mdundo.com chief executive officer, told Sunday Monitor.
He added: “This growth in users reflects the rising popularity of our platform and reinforces our commitment to our current strategy.”
He revealed that: “Focusing on services that are locally relevant to mass-market consumers, as well as our premium offerings, … augment[s] revenue per user.”
Mdundo.com is an online mobile music service with millions of people streaming and downloading music from its app and website every month.
It aims to provide Africa with easy and legal access to online entertainment by delivering locally relevant content, formats and channels to consumers in Africa. It shares revenue with rights owners, record labels and musicians.