Mdundo.com banks on local content and service for revenue growth
Pan-African Music Service Mdundo.com is focused on delivering locally relevant service and acknowledging the significance of cultural diversity and local preferences.
Speaking in Nairobi during the financial performance and outlook media briefing, Martin Nielsen, the chief executive said the company expects to achieve a substantial increase in annual revenue, projecting a range of Sh350 million to Sh430 million for financial year 2023-2024.
This demonstrates an average growth rate of 31 percent compared to the current financial year’s revenue expectations of Sh270 million to Sh330 million.
“We are thrilled to unveil our annual guidance for the fiscal year 2023-24. Our focus on key markets, strategic partnerships, and user-centric initiatives has positioned us for exceptional growth and impact in the African music landscape. We are committed to connecting musicians, music enthusiasts, and industry partners while creating sustainable opportunities for the music industry across all key markets,” said Nielsen.
He noted that they aim to propel its Monthly Active Users (MAUs) to new heights, targeting a remarkable increase from 26 million in the previous financial year to an impressive 35 million, reflecting a notable surge of 35 percent.
Since its IPO in 2020, the company has experienced an astounding seven-fold growth in MAUs, solidifying its position as a leading music service in Africa.
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In terms of EBITDA Improvement, the chief executive said they aim to significantly enhance their EBITDA performance where they foresee an improvement from an anticipated range of Sh145 million to Sh175 million in the previous financial year to a range of Sh130 million to Sh55 million. This represents an average increase of 11 percent, showcasing the company’s dedication to financial progress.
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% of all music consumed within the focus markets is African catalog. The service is approaching 500,000 African songs directly uploaded to the service by +140,000 African creators.
As the company remains firmly on track to achieve its ambitious 2025 strategy, which centers on reaching 50 million monthly active users and achieving a positive EBITDA operation, its strong focus on key markets, groundbreaking partnerships, and innovative value-driven initiatives aer set to steer the company forward.
Mdundo.com current key focus markets are Nigeria, Kenya, Tanzania, Ghana, and South Africa encompass a combined population of 422.21 million people, approximately 35 percent of Sub-Saharan Africa’s population. The markets offer substantial growth opportunities due to high internet penetration rates and robust economic development. In March 2023, the 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.
Nielsen added in as far as recognizing the immense talent and creativity within the Kenyan music scene and providing a platform for these artists to showcase their work to a broader audience, 86, 000 independent Kenyan musicians have Mdundo accounts.
Mdundo.com was founded in Kenya in 2012, today the business is a leading Pan-African music service. The service has 24.5 million monthly active users, with 3 million being from Kenya. The company has also partnered with leading companies such as Vodacom, MTN and Airtel as well as Universal Music Group and Warner Music Group.
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