Mdundo pursuing revenue growth despite weak naira

The Danish-led company, established in Kenya in 2013 and boasting a catalogue featuring nearly 500 000 African releases, revealed this in its latest quarterly statement last week.

Mdundo targets 35 million MAUs by June 2024 and 50 million by 2025, aiming for between $1.71m and $1.99m in revenue for the fiscal year ending June 2024. It expects EBITDA (earnings before interest, taxes, depreciation, and amortisation) to improve year-on-year, targeting -$856 000 to -$1m, despite challenges posed by the declining value of the Nigerian naira.

Nigeria, with an official population of about 220 million people, is part of Mdundo’s focus on five key markets in Africa, along with Ghana, Kenya, Tanzania and South Africa, representing a population of 422 million, or about 35% of sub-Saharan Africa. The company anticipates reaching 613 million mobile subscribers in Africa by 2025.

In February, Mdundo launched MdundoHausa.com, a platform dedicated to hosting exclusively Hausa language songs, curated playlists, DJ mixes and podcasts. Based in northern Nigeria and neighbouring countries, the Hausa people, with an estimated population of 74 million, are the largest in Africa.

Mdundo says it remains optimistic about Nigeria, closely monitoring market dynamics and exploring growth opportunities.

Throughout Q3, Mdundo partnered with global brands like Coca-Cola and Diageo to deliver advertising campaigns across multiple markets and amplify brand visibility and engagement.

Meanwhile, in February, Mdundo announced plans to pay artists between $1.2m and $1.5m in royalties for the 2023-24 period. The breakdown of the total amount payable to content providers is as follows: Kenya will receive 44% for its 56 000 active artists, Tanzania 19% for its 15 200 active artists, Nigeria 17% for its 25 000 active artists, South Africa 7% for its 7 500 active artists, Uganda 6% for its 19 800 active artists, and Ghana 6% for its 6 900 active artists.