Why invest in Mdundo

Triggers:

• Continued high growth in the number of monthly active users (MAU): The target is 50 Mio. MAU in 2025 – from 5 mio. MAU at the IPO in August 2020. At the end of 2023, the company had 30.8 million MAU. MAU
• Evidence that agreements with telcos generate paying subscribers and revenue: Mdundo estimated at the IPO that a smaller telco could generate around 50,000 subscribers and an annual revenue of around DKK 1 million, while a larger telco in a high-income country could generate up to 100,000 subscribers and an annual revenue of up to DKK 8 million.
• Further commercialization of music catalog: In general, investments in music rights on the African continent have grown rapidly in recent years. Currently Currently, Mdundo does not redistribute the music catalog to e.g. other services despite having the rights to do so, which is why this may constitute a new business area.
• Acquisition offers from other players in the sector: As Mdundo’s geographical reach (sub-Saharan Africa), the growth in the number of users (paying as well as free users) and the size of local music catalogs, the possibility of Mdundo being acquired by, for example, African-based companies or international music streaming services in connection with a consolidation of the music streaming market in sub-Saharan Africa increases.

Risks:

• Lower than expected revenue: Too few agreements with telecom companies for Mdundo subscriptions for telecom customers
• Lower than expected advertising sales: Challenge for the business concept. Agreements with telecom companies do not provide the expected number of subscribers/revenue, and continued high illegal music downloading in sub-Saharan Africa.
• Poorer music catalog: International record labels terminate their agreement with Mdundo to stream their catalog. The most streamed African artists cannot be associated with Mdundo or move to other services.