Mdundo upbeat about future in Q3 report

The company has every reason to be upbeat after its monthly active users (MAUs) increased from 10.4 million in calendar Q3 2021 to 21.5 million in calendar Q3 2022. This constitutes an impressive growth of 107% year-on-year (YoY).

In its annual report published in July, for the financial year after it listed on the Nasdaq First North bourse in 2020, the company reported revenue growth of 216% YoY ($301 832 vs $944 878). Its ad revenue also increased 165% YoY from $295 283 to $780 860 compared to the previous year. The company employs banner and audio ad campaigns to derive marketing revenue.

The Q3 2022 report shows that Mdundo’s revenue from paying subscribers accounted for 18% of total revenues – up from 2% in 2021. Mdundo says that the total number of songs uploaded directly to its service reached 400 000 in June 2022.

Founded in Kenya, Mdundo celebrated its 10th anniversary last month, a significant milestone for a platform that first started selling music using scratch-card vouchers – similar to airtime purchases from corner shops – before becoming a free service supported by advertising sales.

Its initial advertisers were Airtel, Coca-Cola and Microsoft, but the service now works with a number of banks and Fast-moving Consumer Goods (FMCG) brands across the continent.

“More than 100 000 African musicians have created an account on Mdundo.com,” Mdundo co-founder and CEO Martin Nielsen said at the 10th anniversary celebration. “The accounts allow artists to manage and control their catalogue and withdraw earned royalties. Mdundo has made payouts of $1m to African rightsholders in the last 10 years.”

He also reported that Mdundo boasted 20.3 million monthly active users across Africa – including 4.9 million in Nigeria, 3.7 million in South Africa, 2.8 million in Kenya and 2.4 million in Tanzania.

“We have also been able to partner with leading African record labels such as Mavin Records, Africori, emPawa, MAD, Slide Digital, Zeze Africa, Tamasha Records, CCA, Lynx, Entertainment, Black Market Records and Kings Music,” Nielsen said, adding that the company has licensing agreements with Warner Music Group, Universal Music and Believe Digital.” On the telco front, Mdundo struck recent deals in Ghana, Tanzania and Nigeria.

Mdundo offers a free ad-supported service and the Mdundo Premium subscription. The company says the premium tier has been an “increasing focus since its IPO in Denmark.”