Pan-African music streaming service, Mdundo, reported a 22% growth in its user base in the last quarter of 2021. The platform registered 20 million users at the end of the second quarter, compared to 16.3 million /-, in the third quarter and which is driven by strong demand for an easy-to-use music service coupled with aggressive expansion into new territories in Africa.
The company also attributes continued growth to strong partnerships with telecom companies and consumer brands such as MTN Nigeria, Vodacom Tanzania, Guinness, SportPesa and Standard Chartered Bank which has seen the service increase its mass market audience. and middle-income, especially among young people aged 18-24.
“We have seen an increase in demand for music streamed online, primarily among younger consumers, an audience that is actively seeking new products and solutions to support their lifestyles,” says Rachel Karanu, Head of Brand Partnerships at Mdundo. .
The most notable growth has been seen in Tanzania, Nigeria and Kenya and has been fueled by the growing popularity of the platform, especially among the 18-24 age bracket.
Total Q4 unique users across all three markets now stand at 12.1 million; Tanzania (3.7 million), Kenya (4 million) and Nigeria (4.4 million). Mdundo’s other major markets are Uganda (1.8 million) and Ghana (1.6 million). Mdundo currently has over 13.3 million monthly users across the continent.
Mdundo envisions continued growth through innovations aimed at attracting new users even as consumer markets recover from the prolonged impact of the Covid-19 crisis.
“In 2022, we expect continued growth as we innovate not only to acquire new users, but also to provide an effective platform for our advertising partners. In today’s environment, that means reducing cost per reach and using targeted consumer campaigns to increase the reach of our partner brands on the continent,” said Karanu.
She adds that Mdundo is resolutely focused on expanding on the African continent.
“Africa holds immense potential due to the rapid growth of the middle income market. We are active in all African countries, our main trading markets being Kenya, Tanzania and Nigeria, we are looking to expand our business interests in Ghana and Uganda in 2022.”
Launched in 2013, Mdundo is a mobile web-based music service offering free downloads of millions of songs from Africa and other parts of the world.
Platform users can download and stream music legally and for free from Mdundo’s website and Android app and are integrated into a growing digital advertising ecosystem including some of the biggest marketing brands in the world.
The platform works with over 100,000 artists from across the continent as well as some of the best record labels in the world. He also advocates for legal music consumption and has been instrumental in rooting out illegal music downloads from online platforms.
Mdundo also provides major consumer brands with a unique and culturally relevant brand marketing approach aimed at building loyalty and increasing sales.
Its major clients include major brands across Africa including; Coca-Cola, Standard Chartered, Safaricom, KCB Bank, Kenya Breweries Limited, Serengeti Breweries Limited, Tanzania Breweries Limited, Guinness Nigeria and Nivea.
“People love music. That’s why we believe music is the most powerful way to connect with people on an emotional level. Our audio ad campaigns run alongside music from top musicians, creating a trusted and personal message influencing real customer decisions.”
“We believe in a fair and open music industry on the continent, where African artists are compensated for their great music and where fans can listen to all the music they want at an affordable price,” Karanu explained.
According to a 2017 survey by PwC, 38% of the 300 million smartphone users in Africa listen to music on their phone every month. The growth of e-commerce is expected to lead to increased consumption of music, movies and other entertainment solutions using smartphones.
Mdundo listed its shares on Nasdaq First North Growth Market Denmark in September 2020, raising $6.4 million to fund its expansion across Africa.