Mdundo, NASDAQ Copenhagen-listed music streaming service, has announced a 140 per cent growth in number of monthly active users to hit 17 million in the quarter to March, up from 7.1 million during the same period last year.
Mdundo offers both a free and subscription-based services but its primary source of revenue is advertisement through display banners and audio advertisements embedded into its music tracks.
The firm made the disclosure during its quarterly announcement for the third quarter of the financial year 2021/22 on Tuesday, adding that the strong growth stems from its main markets in Kenya, Nigeria and South Africa where the number of active users grew 300 percent during the period.
Mdundo enjoyed a rapid growth in users from Nigeria with the populous West African country contributing 4.5 million of the new active users followed by Kenya, South Africa and Tanzania.
The firm said it has conducted initial tests with football and religious content on its site in the third quarter and will continue with the tests after having “achieved positive results from these tests”.
“The launch of brand awareness marketing campaigns in Nigeria and Tanzania, which are expected to have long lasting positive effects on monthly active users as well as paying customers and the opportunity to increase B2B advertising sales,” said the company.
The firm also revealed it has closed B2B advertising agreements with leading brands such as Nivea, 10Bet, Guinness, Airtel and Standard Chartered Bank and held Danish Krone 22.6 million (Sh370.2 million) in deposits by the end of the quarter.
Mdundo had previously announced that its monthly active users is expected to increase to about 18 million at the end of the FY 2021/22 but has adjusted the projection upwards to between 19-20 million monthly active users in next month based on the strong growth.
At the same time, the firm has poached Whitney Njeru Njagi as its new chief operating officer starting this month to steer its growth plans.
Mr Njagi was hired from Lake Turkana Wind Power where he was serving as head of financial planning and analysis.
