Pan-African music streaming service, Mdundo, has announced a 22 percent growth in its user base in the last quarter of 2021.
The platform recorded 20 million users at the end of Q4, up from 16.3 Million, in Q3, driven by strong demand for an easy-to-use music service coupled with aggressive expansion into new territories in Africa.
The company also attributes sustained growth to strong partnerships with telecommunications firms and leading consumer brands such as MTN Nigeria, Vodacom Tanzania, Guinness, Standard Chartered Bank and Safaricom that has seen the service increase its audience in the mass, mid-income market especially among the 18-24 age bracket.
“We have noted increased demand for music served online mainly among the youthful consumer segment, an audience that is actively looking for new products and solutions to support their lifestyle,” said Rachel Karanu, Head of Brand Partnerships at Mdundo.
The most notable growth was recorded in Tanzania, Nigeria and Kenya powered by rising popularity of the platform especially among the 18-24 age bracket.
The total Q4 unique users in the three markets now stand at 12.1 Million; Tanzania (3.7 million), Kenya (4 million) and Nigeria (4.4 million). Other big markets for Mdundo include Uganda (1.8 million) and Ghana (1.6 million). Mdundo currently boasts over 13.3 million users monthly across the continent.
Mdundo is eyeing 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 forecast sustained growth as we innovate not only around acquiring new users, but also offering an effective platform for our advertising partners. In the prevailing environment, this means lowering the cost per reach and using targeted consumer campaigns to grow the reach of our partner brands on the continent,” said Ms. Karanu.
She adds that Mdundo is firmly focused on expansion within the African continent. “Africa holds immense potential due to rapid growth of the middle-income market. We are active in all African countries, with our main commercial markets being Kenya, Tanzania and Nigeria, we are looking to expand our commercial interests to Ghana and Uganda in 2022.”
Mdundo also provides leading consumer brands with a unique and culturally relevant brand marketing approach aimed at building loyalty and growing sales. Its major clients include big brands across Africa including; Coca-Cola, Standard Chartered, Safaricom, KCB Bank, Kenya Breweries Limited, Serengeti Breweries Limited, Guinness Nigeria, SportPesa, Betika and Nivea.
“People love music. That’s why we believe that music is the most powerful way of connecting with people on an emotional level. Our audio ad campaigns are delivered in parallel with music from top musicians creating a trusting and personal message influencing real customer decisions.”
“We believe in a fair and open music industry on the continent, where African artists are remunerated for their great music and fans can listen to all the music they want at an affordable price,” added Ms. Karanu.
According to a 2017 survey by PwC, 38 percent of Africa’s 300 million smartphone users listen to music on their phone monthly. Growth in online commerce is expected to drive increased consumption of music, movies and other entertainment solutions using smart phones.
Mdundo listed its shares on the Nasdaq First North Growth Market Denmark in September 2020 raising $6.4 million to fund expansion across Africa.