Mdundo, an Africa-focused music streaming service, is counting on more partnerships with African telecommunications companies to expand its revenue and user base.
Last year, the company signed agreements with MTN and Airtel in Nigeria, as well as Vodacom in Tanzania, according to TechCrunch.
Since signing the agreement, the company’s user base has nearly doubled, and it has added paying subscribers as a revenue source.
Martin Nielsen, the company’s founder, stated, “This is a new revenue stream for us.” We predicted when we listed the company in September 2020 that revenue from this revenue stream would account for 40% of revenue within a few years, and this is still our forecast.”
According to the company, its users can access music via USSD services on a bundled program (daily, weekly, or monthly), and streaming service is available via its website or app.
It also stated that it has 13.8 million subscribers in 2021 and plans to surpass 18 million by the second quarter of 2022.
It said paying subscribers accounted for 14% of its 2021 earnings, while advertising revenue from its free streaming service increased by 63% after it established sales teams in Nigeria and Tanzania.