African Music Platform Mdundo Reaches 31 Million Users, Reports 50% Growth in Subscription Revenue
African streaming service Mdundo has reached 30.8 million monthly active users (MAUs) in the second half of 2023, marking a 16% increase from June 2023. The platform aims to achieve 50 million MAUs by 2025.
Mdundo music app logo
Key Financial Highlights (July-December 2023):
- Total Revenue: $824,000 (12% YoY decrease)
- Subscription Revenue: $450,000 (48% YoY increase)
- EBITDA: -$477,180 (21% YoY improvement)
- Cash Burn: $303,600
- Cash Balance: $1.94 million (as of December 31st)
The revenue decline was primarily due to a 41% decrease in advertising revenue, attributed to issues with South African partner Ad-Dynamo's execution of an advertisement resale agreement.
Business Model:
- Free tier: Users can download tracks supported by advertising revenue
- Premium tier: DJ mixes available through telecom partnerships in Tanzania, Nigeria, Ghana, and South Africa
Fiscal Year Forecast:
- Revenue: $2.02-2.46 million
- EBITDA: -$939,900 to -$1.08 million
This growth comes as streaming services expand their presence in emerging markets, with competitors like Spotify seeing significant user growth outside North America, Latin America, and Europe. Mdundo's subscription revenue growth is particularly notable given the platform's affordable pricing structure and previous lack of subscription income before 2020.