African music service Mdundo raises $6.4m by listing on Danish Stock exchange

African music service Mdundo has listed on the Danish stock exchange (the Nasdaq First North Growth Market) to accelerate its growth in sub-Saharan Africa.

Established in Kenya in 2013 and headquartered in Denmark, Mdundo claims to have over 5 million active users (via its website and Android app) as well as a combined 20 million-plus downloads and streams per month.

The company’s first day of trading was Friday, September 4 under the symbol MDUNDO.

Mdundo issued 4,000,000 new shares at an offer price of DKK 10 per share, raising DKK 40.0 million (approximately $6.4m).

Based on the offer price, Mdundo’s market cap value is DKK 102.0m (approximately $16m).

The company’s share offer was oversubscribed by 111% during its two week tender period between August 17-28.

Mdundo is available to users worldwide, but focuses on 15 African markets including Kenya, Tanzania, Uganda, Nigeria, Ghana, Zambia, Zimbabwe, Mozambique, Angola, Rwanda, Cameroon, Congo, Malawi, South Africa and Namibia.

The company also claims to work with more than 60,000 artists from across Africa as well “as some of the world’s leading record labels”.

Warner Music Group signed a licensing deal with Mdundo in 2017.

“Mdundo has 5 million monthly users, but the potential is more than 30 times greater.”

Martin Nielsen, Mdundo

Martin Nielsen, CEO Mdundo.com, said: “Mdundo has 5 million monthly users, but the potential is more than 30 times greater.

“Based on a steep growth curve and a very scalable solution, we will invest further in user growth and in our market coverage of the whole of sub-Saharan Africa, so that within three years we have established Mdundo as the leading pan-African music service for consumers and musicians.

“When we list on Nasdaq First North Growth Market, the goal is to raise capital for this international growth journey.”

“We are proud to welcome Mdundo.com to the Nasdaq First North Growth Market.”

Carsten Borring, Nasdaq Copenhagen

Carsten Borring, Head of Listing at Nasdaq Copenhagen added: “We are proud to welcome Mdundo.com to the Nasdaq First North Growth Market.

“With the listing of Mdundo.com’s music service solution, we continue the important investment in Danish technology start-ups, which will ensure continued growth, development and innovation, as well as the jobs of the future.”Music Business Worldwide