Podimo Secures €44M in Combined Funding, Gears Towards Profitability
21 December 2023, Copenhagen – Podimo, Europe's fastest growing podcast and audiobook subscription service, announces a significant milestone with the successful closing of a combined funding round totalling €44 million from The Danish Export and Investment Fund (EIFO), HighlandX and Chr. Augustinus Fabrikker. This substantial funding signals a stable, vibrant future for the company and the industry as a whole, while reinforcing a commitment to innovation, creator empowerment, and sustained growth.
"This investment allows Podimo to continue our strong growth trajectory while orienting the company towards profitability," remarks Morten Strunge, CEO of Podimo. "Our primary focus is on cultivating a robust business model that ensures success for all stakeholders within the spoken audio entertainment ecosystem."
Podimo's growth and subscription model has demonstrated remarkable resilience, particularly in the current economic landscape, and its strategic approach to delivering premium, exclusive content propels substantial user engagement and retention. The subscription service has expanded to seven markets since its launch in Denmark in 2019 and has grown its subscriber base by almost 50% in the last year alone. This past year has shown an encouraging surge in global user engagement, with listeners amplifying their time spent on the platform, engaging with an average of 20 hours of spoken-word audio entertainment monthly.
"We're proud of the trust our listeners place in us, demonstrated by their increased engagement and diversified content preferences. Our continued focus on delivering quality shows and a seamless user experience has resulted in significant growth and sustained enthusiasm from both creators and listeners," says Strunge.
Podimo remains committed to empowering creators by providing sustainable monetization avenues while maintaining a balance between growth aspirations and financial responsibility. The company’s allure to creators extends beyond predictable monetization tools. Podimo is a one-stop shop for creators, leveraging its listening data and expert local teams to help creators develop the format and nurture the show’s audience and creator’s fanbase. This unique proposition aligns with the company’s mission to empower creators to concentrate on producing exceptional content.
The company has also been investing heavily in tech and product, being the first podcast app to test features like “Conversational Search,” a user-facing chatbot that aids listeners in helping discover their next favorite podcast or audiobook, as well as developing a host of new AI tools to increase diversity in listening.
"This funding isn't solely about financial support. While profitability remains a key objective, our investment focus extends beyond financial milestones. We are resolutely committed to enhancing our product and sustaining a healthy business model that benefits creators and listeners alike,” concludes Strunge.
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About Podimo:
Podimo is Europe's fastest-growing podcast and audiobook subscription service with a strong presence across seven markets and ongoing expansion plans. Founded in Copenhagen in 2019, the company's core focus lies in championing local content and diverse voices, offering an array of original and exclusive ad-free podcasts, global RSS feed content, and audiobooks. Podimo is committed to offering spoken audio creators alternative avenues for monetisation and validation of their content, enabling them to concentrate solely on their craft. The app offers personalized audio experiences through a blend of human curation and AI, and listeners can enjoy Podimo on iOS and Android, iPad, CarPlay - as well as on web player at podimo.com.
About the Danish Export and Investment Fund, EIFO:
The Danish Export and Investment Fund (EIFO) is Danish companies' single point of access to government financing. EIFO is Denmark's national business promotion bank and Denmark's official export credit agency in one and the same financial institution. Together with other financial players, EIFO provides loans, guarantees and invests in Danish companies in order to support the companies that can make Denmark richer in what makes a difference.
About HighlandX:
HighlandX Fund I is a venture capital fund managed by Highland Capital Partners, a global venture capital firm with offices in Boston, Silicon Valley, and San Francisco. Highland has raised over $4 billion in committed capital and invested in more than 280 companies, with 47 IPOs and 134 acquisitions.
About Chr. Augustinus Fabrikker:
Chr. Augustinus Fabrikker is a foundation-owned investment company with extensive interests in the Danish business community. As part of a strategy to be a long term, committed and value-adding owner, the portfolio comprises considerable ownership in successful and iconic Danish businesses. The asset base of approx. 35 billion enables Chr. Augustinus Fabrikker to actively reinvest in Danish businesses as well as securing the philanthropic activities of Augustinus Fonden.