Mdundo Receives Investor Proposal for Up to 40% Stake

Africa-focused streamer Mdundo receives non-binding proposal from investor seeking up to 40% stake

May 7, 2026 By Music Business Worldwide

Mdundo , the Africa-focused music streaming platform, has received a non-binding letter of intent from an unnamed third party regarding a potential investment in the company.

The proposal outlines a transaction involving a directed issue of new shares combined with a possible acquisition of shares from major shareholders, including JVD Holding ApS , a company owned by Mdundo Board Chair Jesper Drescher , that could result in the investor obtaining a stake of up to approximately 40% in the company.

As part of the proposal, the potential investor has indicated a subscription price of DKK 2.50 per share. That represents a significant premium to the DKK 1.00 per share subscription price attached to Mdundo’s ongoing rights issue.

The Kenya-born company disclosed the proposal at the end of April, in the middle of a rights issue that was open for subscriptions from April 22 to May 5.

The Board of Directors, excluding Drescher due to a conflict of interest arising from his ownership of JVD Holding ApS , decided to defer the proposal until after the rights issue has been completed, citing its preliminary and non-binding nature.

“The Board of Directors notes that the proposal reflects continued external strategic interest in the Company and its long-term growth potential,” the company said in a regulatory filing.

“The letter of intent is non-binding and subject to customary conditions, including due diligence, agreement on final terms, and relevant approvals.”

The board added: “There can be no assurance that any transaction will be agreed or completed.”

Following completion of the rights issue, the board said it will assess whether the proposed transaction should be pursued, “including whether and how a broader partnership approach in connection with the potential investment can be realized and has the potential to create substantial long-term shareholder value.”

“More generally, the Board is positive towards attracting a strategic investor that can support the Company’s development and accelerate long-term shareholder value,” the company said.

The board also concluded that the receipt and disclosure of the non-binding letter did not constitute a material change that would trigger the right to withdraw subscriptions in the ongoing rights issue.

The proposal arrives roughly a year after Mdundo launched a strategic review , in April 2025, with Deloitte Corporate Finance South Africa serving as financial advisor.

At the time, Drescher said: “Since the IPO, Mdundo has strengthened its well-built and scalable platform, grown user numbers significantly and gained access to a growing subscriber base via partnerships.”

“On this basis, it is natural for us to analyze the next steps in the company’s strategic development.”

In March this year, Mdundo disclosed that the board had been in discussions with a potential strategic investor but that no opportunity had progressed far enough to pursue.

Mdundo is listed on Nasdaq First North Growth Market in Copenhagen and reports its earnings in Danish kroner.

The company was founded in Kenya in 2013 and has grown from 5 million monthly active users at the time of its 2020 IPO to 41.5 million , according to its most recent rights issue filings — though in October 2025, the company replaced monthly active users with paying subscribers as its primary non-financial KPI.

The investment approach comes at a point of transition for Mdundo , which has been grappling with billing instability across its largest telecom partners.

In its most recent quarterly report, covering January to March 2026, the company said telco subscription transactions fell to 8.1 million in Q3, down from 9.9 million in the prior quarter.

The company has cut operating expenses by 50% from the prior fiscal year and estimates that approximately 20,000 direct subscribers per month would be sufficient to approach break-even.

The rights issue, announced on April 10, aims to raise up to DKK 10.2 million (approximately USD $1.5 million ), with pre-subscription commitments and guarantee undertakings of approximately DKK 7.5 million , around 73.2% of the total, already secured from existing shareholders and an external investor.

Mdundo ‘s business model relies on partnerships with eight telecom providers, including MTN , Vodacom , Airtel , and Safaricom , which the company says give it access to over 352 million telecom customers across the continent. Music Business Worldwide

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_Originally reported by [Music Business Worldwide](https://www.musicbusinessworldwide.com/africa-focused-streamer-mdundo-receives-non-binding-investment-proposal-that-could-hand-third-party-up-to-40-stake/)._