Africa’s Music Service Approaching Profitability
Join Mdundo’s growth journey as we scale premium subscriptions and approach EBITDA profitability. Infrastructure built. Profitability within reach. Capital to accelerate growth.
DKK 7.5–10.2M capital raise to accelerate premium growth and reach EBITDA positive within 12–18 months. Rights issue open from 22nd April to 5th May 2026. Pre-subscription commitments and guarantee undertakings from existing shareholders and new investor of approximately DKK 7.5 million.
Investors are advised that subscription deadlines may vary across banks, including for subscriptions with and without exercise of subscription rights, and may occur earlier than the official deadline.
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The Investment Case
Mdundo represents a proven and scalable business operating at the intersection of strong market growth and improving monetization dynamics. The company has already established a recurring revenue base of DKK 8.7 million in recurring revenue and 906,000 paying telco subscribers, demonstrating product-market fit at scale. At the same time, Africa presents a significant opportunity, with 483 million internet users growing at approximately 8% annually and 676 million mobile money accounts enabling digital payments. As structural barriers to paid digital services continue to decline, Mdundo is well positioned to convert usage into revenue. With break-even expected at around 20,000 direct subscribers and strong operating leverage in the model, incremental revenue increasingly translates directly into EBITDA.
Business Model
Mdundo operates a dual-engine revenue model combining a stable telco-driven foundation with a high-growth premium layer. The core business is built on telco partnerships, generating DKK 8.7 million in annual recurring revenue through integrations with eight telecom partners, providing access to 352 million users across Africa. This creates a scalable and resilient distribution platform. On top of this, Mdundo is expanding its direct premium offering, currently serving more than 1,500 paying users in a higher-ARPU segment. This layer targets the African middle class and global diaspora through app-based experiences and diversified payment methods, including mobile money and card payments.
Use of Funds
The proceeds from the rights issue will be used to accelerate growth in an already validated business, rather than to sustain operations. DKK 4.6–7.5 million will be invested in product development, including iOS and Android applications, expansion of payment options, and continued optimization of conversion funnels. The remaining DKK 1.5–2.0 million will support operational runway, providing 12–18 months to reach EBITDA profitability. The capital is expected to directly drive growth in high-margin subscription revenue.
Growth Strategy
Mdundo’s growth strategy is focused on scaling premium subscriptions by targeting high-value user segments and improving conversion efficiency. The company will develop app-based premium experiences tailored to the African middle class, while also expanding its reach within the global African diaspora, currently estimated at 500,000 to 1 million monthly users. At the same time, Mdundo will continue to optimize its conversion funnel through systematic improvements to pricing, content, and user experience, increasing the share of users transitioning to paid subscriptions.
Financial Upside
Mdundo’s model is characterized by strong operating leverage, where relatively small increases in subscriber numbers have a significant impact on profitability. The business is expected to reach EBITDA break-even at approximately 20,000 direct subscribers, while 100,000 subscribers could generate around DKK 4.8 million in EBITDA. With a largely fixed cost base, each additional subscriber contributes directly to profitability, creating a highly scalable earnings profile as the premium segment grows.
