African Music Streaming Upstart Mdundo Anticipates 35% MAU Growth in the Next Fiscal Year

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Photo Credit: Music in Africa

African music streaming upstart Mdundo anticipates 35% MAU growth in the next fiscal year, according to the company’s recently released growth trajectory report.

In a recently released report, African music streaming service Mdundo announced that it was continuing to see strides in its growth trajectory with a focus on key markets, strategic partnerships, and value-driven initiatives.

Mdundo anticipates a significant growth in monthly active users (MAU) with a target increase from 26 million in the previous financial year to 35 million — 35% growth. That number reflects an impressive sevenfold increase in MAU since its IPO in 2020, highlighting the platform’s increasing reach throughout Africa.

The company expects a substantial increase in annual income, projecting a range of $2.4 million to $3 million. That demonstrates an average growth rate of 31% compared to this financial year’s revenue expectation of $1.9 million to $2.3 million. The guidance reflects an increase in yearly revenue since the IPO of 11 to 13-fold.

Mdundo further hopes to improve earnings before interest, taxes, depreciation, and amortization (EBITDA), anticipating an improvement of 10% and reflecting the company’s dedication to financial progress and minimizing cash burn. The company adds that it remains firmly on track to achieve its ambitious 2025 strategy of reaching 50 million monthly active users and achieving positive EBITDA.

To that end, the company will focus on three primary areas that underpin its strategic approach to drive growth, deliver value, and revolutionize the music landscape across Africa.

Mdundo said that attention would remain on Nigeria, Kenya, Tanzania, Ghana, and South Africa — key markets that include a combined population of 422 million people, approximately 35% of sub-Saharan Africa’s population. That offers substantial growth opportunities due to high internet penetration rates and robust economic development. In March, those markets accounted for 16.6 million of Mdundo’s 24.5 million MAU count, with the remaining 30% distributed across secondary focus markets.

Mdundo also seeks to increase value per user via telco and premium products through collaborations with prominent providers, including Vodacom in Tanzania, Airtel in Nigeria, and MTN in Nigeria, Ghana, and South Africa. These partnerships reach a collective customer base of 185 million people, enabling Mdundo to address the low penetration of payment cards in Africa while delivering enhanced value to its users.

Previously, the company announced that those partnerships accounted for 33% of total revenue in H1 2022-23, a sixfold increase in revenue from the same period in the previous year.

Finally, Mdundo would seek to deliver locally-relevant services and content, acknowledging the significance of cultural diversity and local preferences. The company said previously that approximately 80% of all music consumed in the focus markets stemmed from its African catalog and that the service was approaching 500,000 African songs directly uploaded to Mdundo by more than 140,000 creators.