Mdundo anticipates 35% MAU growth

The company said in a recently released report that it was continuing to make strides in its growth trajectory, driven by its focus on key markets, strategic partnerships and value-driven initiatives.

Mdundo anticipates a significant growth in monthly active users (MAUs), targeting an increase from 26 million in the previous financial year to 35 million – or 35% growth. The guidance reflects an impressive sevenfold increase in MAUs since its IPO in 2020, highlighting the platform’s expanding footprint in Africa.

On the revenue front, the company expects to achieve a substantial increase in annual income, projecting a range of $2.4m to $3m. This demonstrates an average growth rate of 31% compared to this financial year’s revenue expectation of $1.9m to $2.3m. The guidance reflects a 11- to 13-fold increase in yearly revenue since the IPO.

Mdundo also hopes to improve earnings before interest, taxes, depreciation and amortisation (EBITDA), foreseeing an improvement of 10%, which reflects the company’s dedication to financial progress and minimising cash burn.

Mdundo added that it remained firmly on track to achieve its ambitious 2025 strategy, which centres on reaching 50 million MAUs and achieving positive EBITDA.

For this to happen, the spotlight will be on three focus areas that underpin its strategic approach to drive growth, deliver value and revolutionise the music landscape in Africa.

First off, the company said attention would remain on Nigeria, Kenya, Tanzania, Ghana and South Africa. These key markets include a combined population of 422 million people, approximately 35% of sub-Saharan Africa’s population, offering substantial growth opportunities due to high internet penetration rates and robust economic development. In March 2023, these markets accounted for 16.6 million of Mdundo’s 24.5 million MAUs, with the remaining 30% distributed across secondary focus markets.

Secondly, Mdundo seeks to increase value per user through telco and premium products through collaborations with prominent providers, including Vodacom in Tanzania, Airtel in Nigeria as well as MTN in Nigeria, Ghana and South Africa. These partnerships collectively reach an extensive customer base of 185 million people, enabling Mdundo to address the low penetration of payment cards in Africa and deliver enhanced value to its users.

The company previously announced that revenue from these partnerships accounted for 33% of total revenue in H1 2022-23, a sixfold increase on the revenue line from the same period in the previous year.

Lastly, it would seek to deliver locally relevant services and content, acknowledging the significance of cultural diversity and local preferences. The company previously said that approximately 80% of all music consumed in the focus markets was from its African catalogue and that the service was approaching 500 000 African songs directly uploaded to Mdundo by more than 140 000 creators.