Musician A Pass, (Left) says he will one day create a Ugandan sound. PHOTOS /COURTESY
A leading African music platform projects a significant growth in its monthly active users, increasing from 26 million to 35 million year-on-year.
Mdundo.com’s Guidance for Financial Year 2023/2024 reflects an astounding seven-fold increase in its monthly active users since holding an initial public offering (IPO) in 2020.
Consequently, the company expects to achieve a substantial increase in annual revenue with projections hovering between $2.5m and $3m.
The guidance reflects an 11 to 13-fold increase in yearly revenue since the 2020 IPO. Its financial projections, the guidance states, showcase Mdundo.com’s steadfast commitment to sustainable growth and its ability to capitalise on the tremendous potential of the music industry in Africa.
Mdundo.com says it remains on track to achieve its ambitious 2025 strategy, which centres on reaching 50 million monthly active users and achieving positive earnings before interest, taxes, depreciation, and amortisation or EBITDA operation.
According to the guidance, the company will focus on Nigeria, Kenya, Tanzania, Ghana, and South Africa because these key markets encompass a combined population of 422 million people—approximately 35 percent of sub-Saharan Africa’s population.
“They (key markets) offer substantial growth opportunities due to high internet penetration rates and robust economic development,” the company says, adding: “In March 2023, these markets accounted for 16.6 million of Mdundo’s 24.5 million monthly active users, with the remaining 30 percent distributed across secondary focus markets.”
The company will focus on driving value per user through telco and premium products.
To this end, Mdundo.com has established music packages in collaboration with prominent telecommunications providers, including Vodacom in Tanzania, Airtel in Nigeria, and MTN in Nigeria, Ghana, and South Africa.
According to the company, these partnerships collectively reach an extensive customer base of 185 million people, enabling Mdundo.com to address the low penetration of payment cards in Africa and deliver enhanced value to its users.