Front page > Investment cases > Mdundo
Mdundo is a music streaming service similar to Spotify but with a sole focus on the African market south of Sahara (Sub-Saharan Africa). Mdundo is under Danish management with operational headquarters in Kenya.
Mdundo’s streaming product consists of a music service accessible online via the website www.mdundo.com and via an Android app. Mdundo has more than 10 mill. active users on both the website and on the app.
The music streaming service is available for users all over the world, but Mdundo is both active and has its business focus in 15 countries in Sub-Saharan Africa including Kenya, where Mdundo started in 2013.
Triggers:
Risks:
Business model
Mdundo’s business model comprises primarily of income from ad sales and secondarily from subscriber payments, thus the model is quite similar to Spotify’s business model. Hence, significant factors for Mdundo’s investment case are the number of users and music streams, ad sales and paying subscribers (primarily from agreements with telecom companies).
From the IPO in August 2020 to October 2021, Mdundo has had a growth of more than 100% in number of users resulting in more than 10 mill. monthly active users (MAU). The defined target at the IPO in August 2020 was to reach 18 mill. in June 2022.
MAU 2015/16 – 2021/22E
A fundamental part of the investment case rests on the number of telecom subscribers that covert to paying users of Mdundo along with the number of agreements with telecom companies. Mdundo has agreements with the telecom companies: Vodacom Tanzania along with Airtel and MTN in Nigeria, whom combined have 125 mill. subscribers. End of fiscal year 2021/22, Mdundo expects to have a total of 4-5 agreements with telecom companies.
The revenue was DKK 2,3 mill. in 2020/21 and is expected to increase to DKK 9 mill. in 2021/22 including annual advertisement agreements.
Front page > Investment cases > Mdundo
Kapital Partner performs or has within the last 12 months performed corporate finance, market relations, investor relations, Certified Adviser or other advisory activities for the following listed companies: NORD.investments, Biosergen, InterMail, Pila Pharma, Hypefactors, Curasight, Evaxion, Re-Match, Audientes, Mdundo.com, Nexcom.
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