The African music industry is experiencing rapid growth, with the continent’s music scene buoyed by increasing global popularity among a young, tech-savvy population.
Digital music platforms like Boomplay, Deezer, Spotify, and Apple Music have played a key role in Africa’s growth, expanding access to African music on a global scale.
The widespread adoption of mobile technology and rising internet penetration further enable more Africans to stream music online and engage with a broader music community.
Also, the global recognition of African musical talent has been remarkable, with 2023 continuing this trend. Africa’s annual music streaming revenues are expected to increase from $92.9 million in 2021 to $314.6 million by 2026.
According to PricewaterhouseCoopers’ report, there will be significant growth in music streaming across major markets such as South Africa, Kenya, and Nigeria, with South Africa’s streaming subscription revenue anticipated to grow at a 10.5% compound annual growth rate, reaching R1.1 billion ($58.5 million) by 2027.
This projected increase has fueled the rise of innovative startups leveraging technology to transform music access and enjoyment across the continent.
Below is a list of some of Africa’s high-potential music startups that have successfully raised over $100,000 in funding or partnered with top music companies worth millions of dollars.
Anghami
Anghami, a music streaming platform in the Middle East and North Africa, provides over 70 million users across MENA, Europe, and the USA with access to more than 57 million Arabic and international songs, and podcasts.
Co-founded by Elie Habib and Eddy Maroun, Anghami launched in November 2012 in Beirut, Lebanon. In 2021, the company moved its headquarters to Abu Dhabi, UAE, as part of the Abu Dhabi Global Market (ADGM) initiative, supported by the Abu Dhabi Investment Office (ADIO).
Anghami is backed by prominent venture capital firms and strategic shareholders, including Middle East Venture Partners (MEVP), Saudi Arabia’s MBC Group, Saudi Telecom’s Mobily, UAE Telecom’s Du, SHUAA Capital, Samena Capital, Megladon, and U.S.-based Endeavor and Sal&Co.
In its latest funding round, Anghami raised $63.6 million through post-IPO equity and currently employs between 51 and 200 staff.
Boomplay
Boomplay, also known as Boomplay Music, is an Africa-focused media streaming and download service developed by Transsnet Music Limited.
The platform was launched in Nigeria in 2015 by TECNO Mobile, a subsidiary of Transsion Holdings. Phil Choi, a seasoned professional with extensive experience in the music streaming industry, serves as the Managing Director at Boomplay.
Boomplay has raised over $25.5 million in funding across two rounds. The latest round was a Series A in 2019, where the company secured $20 million, led by Maison Capital and followed by Seas Capital and other strategic investors.
This funding aimed to support Boomplay’s expansion, focusing on content acquisition, product optimization, recruitment, and strengthening its position as Africa’s leading music streaming service.
In an earlier round on January 1, 2016, Boomplay raised $5.5 million from undisclosed investors. The platform has rapidly grown to become the largest and fastest-growing music streaming service in Africa.
Mdundo
In 2020, Mdundo secured $6.4 million through an Initial Public Offering (IPO) to support its expansion across Africa. The IPO, listed on the Danish Stock Exchange, Nasdaq First North Growth Market, attracted nearly 3,000 investors.
Founded in 2012 by Martin Nielsen, Francis Amisi, Jura Sidorenko, and Kresten Buch, Mdundo offers free access to a vast library of popular African songs through its website and app.
The platform operates in 15 Sub-Saharan African countries, with a strong presence in Kenya, Tanzania, Uganda, Nigeria, and Ghana, and is gaining traction in markets such as South Africa, Zambia, and Zimbabwe.
Despite reporting a 41% year-on-year increase in monthly active users (MAUs), Mdundo’s revenues have fallen short of expectations due to a currency crisis in Nigeria. Listed on the Danish stock exchange and reporting in Danish kroner, Mdundo projects revenue between DKK 12 million and 14 million (USD $1.71 million to $1.99 million) for the fiscal year ending June 30, 2024. The platform currently serves over 5 million users monthly across Africa.
Ayoken
Ayoken, founded by Joshua King in 2021, is the first platform dedicated to buying exclusive digital collectibles and social tokens from musicians, sports brands, creatives, and influencers from Africa and the global diaspora. The platform launched its NFT marketplace after raising $1.4 million in a pre-seed funding round in 2022.
Key investors in this round included Founders Factory Africa, Texas-based Kon Ventures, European-based Crypto League, Ghana-based R9C Ventures, and Maximus Ventures. Since the 2022 fundraising, Ayoken has remained relatively under the radar, with no recent updates on its growth or development.
Groove Platforms
Groove Platforms, an African technology company, is transforming the music service value chain with a mission to lead Africa into a new era of music services. The company aims to compete globally while catering to diverse markets across the continent.
By fostering an integrated ecosystem, Groove Platforms empowers artists, enhances fan engagement, and drives industry growth through innovative technology and strategic partnerships.
The company offers three key products: the uduX Livestream Concert Platform, providing high-quality live event streaming; PopRev, a platform for fan investment in music projects set to launch in 2024; and the uduX Music App, a streaming service with a refreshed launch scheduled for Q3 2024.
Launched in April 2019 by Chidi Okeke -Groove Platforms secured a major milestone by inking a licensing deal with Universal Music Group, becoming the first African-owned streaming platform to be licensed by all three global major record companies—Universal, Sony Music, and Warner Music Group.
Additionally, Groove Platforms has partnered with MTN, allowing the telco’s subscribers to access discounted data bundles for unlimited music streaming on the uduX app.
These startups represent the growing diversity and innovation in the music industry, each bringing something unique to the table while successfully securing funding to fuel their growth.