Africa-focused music streaming service Mdundo has experienced a significant increase in revenue and monthly active users (MAUs), according to its annual report for the fiscal year ending June 30, 2023. The company reported a 239% year-on-year (YoY) jump in revenue from paid subscriptions, reaching DKK 12.6 million (USD $1.78 million). Additionally, Mdundo recorded a 23.2% YoY increase in MAUs, with a total of 26.6 million users at the end of June. The company aims to raise 40% of its revenue from subscriptions and achieve 35 million MAUs by the end of the next fiscal year.
Subscription revenue now accounts for 35% of Mdundo’s total revenue, marking a significant increase from 18% in the previous fiscal year. The company’s success in subscription growth puts it on track to achieve a positive EBITDA by 2025. Furthermore, advertising revenue also grew by 37% YoY, with a total revenue increase of 75% YoY. However, Mdundo faced challenges due to the weakening of the Nigerian naira and a 25% decline in the Kenyan shilling.
Mdundo’s focus remains on key markets in Africa, including Nigeria, Kenya, Tanzania, Ghana, and South Africa, which offer substantial growth opportunities due to high internet penetration rates and robust economic development. The company has established partnerships with major telecom providers such as Vodacom, Airtel, and MTN to expand its customer base of 185 million people and address the low usage of payment cards in Africa. Mdundo strives to provide a legal and easy alternative for music consumption, with a strong emphasis on delivering locally relevant service and content.