Created just one year ago, the Danish music streaming platform Mdundo available in Africa is raising funds thanks to its IPO.
While music streaming has exploded around the world, illegal music download sites are very popular in Africa. The impact for local artists? They miss out on significant potential revenues from music sales or royalties. Mdundo, a newcomer in the streaming war, is raising $6 million to better remunerate artists in Africa. Based in Kenya, this music download platform allows users to download songs for free to their devices.
80,000 African artists listed
To differentiate itself from illegal platforms, Mdundo has hired musicians to legally list their catalog on its platform. They can thus generate revenue by selling up to 10 seconds of advertising space on the songs. The advertising revenues generated are shared 50% with the artists registered on the platform. The model has seen Mdundo recruit 80,000 African artists with a collective catalog of 1.5 million songs. The platform generated $300,000 in advertising sales last year.