African streaming service Mdundo reported reaching 30.8 million monthly active users (MAUs) in the second half of 2023, marking a 16% increase from June 2023. The company aims to achieve 50 million MAUs by 2025.

Key Financial Highlights (July-December 2023):

• Total revenue: $824,000 (5.7M Danish krone), down 12% YoY
• Subscription revenue: $450,000 (3.1M DKK), up 48% YoY
• Advertising revenue declined 41% YoY due to issues with Ad-Dynamo partnership
• EBITDA improved 21% YoY to -$477,180 (-3.3M DKK)
• Cash burn: $303,600 (2.1M DKK)
• Cash balance as of December 31st: $1.94M (13.4M DKK)

Business Model:

• Free tier: Users can download tracks supported by advertising revenue
• Premium tier: DJ mixes available through telecom partners in Tanzania, Nigeria, Ghana, and South Africa

FY 2023-24 Forecasts:

• Revenue: $2.02M - $2.46M (14M - 17M DKK)
• EBITDA: -$939,900 to -$1.08M (-6.5M to -7.5M DKK)

The company's growth in subscription revenue is particularly notable given its recent introduction and modest pricing structure. This expansion aligns with broader industry trends, as streaming services increasingly focus on emerging markets for growth opportunities.

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