Kenya-Based Mdundo Lists On Danish Exchange
The Kenya-based music service Mdundo has listed its shares on the Nasdaq First North Growth Market Denmark.
Launched in 2013, Mdundo provides access to all the continent’s favorite music to over five million monthly active users in 15 countries in Sub-Saharan Africa, with over 20 million monthly downloads and streams via its website and app.
The company’s main markets are Kenya, Tanzania, Uganda, Nigeria, and Ghana, with an increasing focus on Zambia, Zimbabwe, Mozambique, Angola, Rwanda, Cameroon, Congo, Malawi, South Africa, and Namibia, and it has now decided on an initial public offering in Denmark, where it is headquartered.
During the two-week tender period leading up to the listing date, Mdundo’s share sale offer was oversubscribed by 110 percent, receiving subscriptions from almost 3,000 investors and raising DKK40 million (US$6.4 million).
“Mdundo currently has five million monthly users, but our potential is more than 30 times greater. With a steep growth curve and a very scalable solution, we plan to invest further in user growth to increase our market coverage to the whole of sub-Saharan Africa, so that within approximately three years we will have well established Mdundo as the leading pan-African music service for consumers and musicians. In this way, we want to achieve in Africa what Spotify has achieved in the West and what Tencent has achieved in Asia,” said Martin Nielsen, chief executive officer (CEO) of Mdundo.
In Africa, 30 percent of mobile phone users listen to music on their mobile phone, however this is done primarily through illegal downloads, similar to the situation in Europe and the US approximately 15 years ago. Much as services like iTunes and Spotify took over that market, Mdundo is positioning itself ahead of the curve in Sub-Saharan Africa, powering the uptake of access to music through its legal music service.