Kenya's Mdundo expects to pay out $1.5m in royalties this year

STARTUP VENTURE CAPITALFebruary 16, 2024 at 5:10 PM UTC

TLDR

Mdundo, a Kenyan music distribution startup, plans to pay out up to $1.5 million in royalties to African artists for 2023/24.
The company operates as a pan-African music service and has experienced significant growth since its listing on Nasdaq.
Around 156,000 artists from Kenya, Tanzania, Nigeria, South Africa, Uganda, and Ghana will benefit from the royalties.

Mdundo, a Kenyan music distribution startup, is forecasting a payout of up to $1.5 million in royalties to artists for 2023/24, as part of its efforts to empower African musicians and advocate for equitable compensation within the music industry.

Established in Kenya in 2013, Mdundo operates as a pan-African music service, facilitating the legal and convenient distribution of music across the continent. Following its listing on the Nasdaq First North Growth Market Denmark in 2020, the company experienced significant growth, with 30.8 million monthly active users accessing music from over 172,000 content providers.

For the 2023/24 period, artists are expected to receive royalties ranging from $1.2 million to $1.5 million, benefiting around 156,000 artists from Kenya, Tanzania, Nigeria, South Africa, Uganda, and Ghana.

Key Takeaways

Mdundo has achieved a significant milestone, reaching 30.8 million monthly active users (MAUs) by the conclusion of 2023. This represents a 16% increase from June 30, 2023, when the company reported 26.6 million MAUs. The company announced that this growth trajectory positions it well to attain its target of 50 million MAUs by 2025. Despite an overall decline in revenue for the first half of fiscal year 2023/24 (1H 2023/24), which dropped by 12% year-over-year to DKK 5.7 million ($823,000 at current exchange rates), a notable driver of growth has been the company's subscription service. Subscription revenue experienced a remarkable 48% year-over-year surge, reaching DKK 3.1 million ($448,000) compared to DKK 2.1 million in the corresponding period last year. This subscription revenue now constitutes a dominant 55% of the total income. The shift towards subscription revenue, from no paid service revenue in 2019/2020, underscores Mdundo's strategy of collaborating with telecommunication providers and offering premium features to its users.

Mdundo

Kenya

Entertainment

Startup

Music