Podcast and audiobook platform Podimo announced a fresh round of funding to the tune of $58.99 million. The company said it would put to use a sizeable portion of the fund to tap into new markets, and enhance its content as well as the tech platform. As the website Digital Music News reported, London-based backer 83North and Highland Europe led the €58.6 million round with the Israel-based company Saban Ventures. The raise was also supported by Chr. Augustinus Fabrikker (“Christian Augustinus Industries”), Reddit investor Heartcore, and former Sonos stakeholder Headline.
What is also significant with the Podimo business model is that the company is already profitable and has in fact managed to increase the number of paid members by five times. All of this despite being in operation for just three years. The company has steadfastly been focussing on what it refers to as the “dedicated local-first approach”. That points to “investing in local content from today’s most important voices”. The company provides streaming services in countries like Denmark, Norway, Finland, the Netherlands, Germany, Spain, as well as Latin America.
Podimo founder and CEO Morten Strunge said, “Our international expansion is progressing beyond expectations, and we continue to see our growth and content strategy scale efficiently. This funding round sends a clear message that our model is working. As we continue to focus on growing our existing markets and opening new ones, we are also building on our extensive catalog of content.”
“With the current market conditions it’s also important to demonstrate financial sustainability, which is why we are pleased to see our first market turn profitable just three years after the launch of Podimo, with multiple markets on a similar trajectory, further added Strunge.
All of this assumes significance considering that streaming major Spotify is yet to come out of the red. The company has been investing heavily in podcasting off late and is also in the process of introducing audiobooks soon. However, it could still be another two years or so before it starts making a profit.
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