The podcasting world is burgeoning, with nearly half a billion avid listeners. Embracing this wave, Podimo, the Copenhagen-based startup, has secured €44 million ($48 million) in funding to fuel its global ambitions within the vibrant podcasting landscape.
Functioning on a Netflix-inspired monthly subscription model, Podimo plans to allocate the fresh funding across various business aspects. These include bolstering production tools, expanding its distribution network, and delving deeper into localization efforts.
Presently accessible in Denmark, Norway, Germany, Spain, The Netherlands, Finland, and Latin America, Podimo charges listeners between $5 and $7 per month, while offering creators higher rates to utilize its suite of tools. The company is poised to broaden its reach to encompass additional countries.
This funding round follows a remarkable year for Podimo, witnessing a substantial surge in average user engagement to 20 hours per month and an 80% growth in its subscriber base. Although CEO Morten Strunge refrained from disclosing specific subscriber numbers, Podimo boasts around 350 shows released weekly, with a handful of creators producing multiple shows, culminating in approximately 350 creators currently active on the platform.
EIFO (Danish Export and Investment Fund) leads this funding round, accompanied by HighlandX and Augustinus Fabrikker. Prior to this injection, Podimo had raised over €200 million, with the last round, just over a year ago in September 2022, amounting to over €58 million.
While Podimo strides towards profitability in Denmark and aims to replicate this success globally, the podcasting industry faces complexities. Despite the growing listener base, monetization challenges persist for podcasting entities, both platforms, and content creators alike.
Podimo stands distinctively as an independent platform, avoiding assimilation into larger conglomerates. However, this autonomy poses both agility and potential exposure risks amidst the strategies of industry giants. The platform’s reliance on external platforms for distribution and promotion introduces further intricacies.
Strunge emphasizes Podimo’s all-inclusive nature as a standout feature. Creators harness the platform for content production, native advertising integration, direct distribution on Podimo, dissemination to other platforms, and comprehensive analytics on their content performance.
The roadmap ahead involves intensifying focus on hyper-localized content, encompassing diverse languages and tailored information catering to specific regions. Strunge underscores the challenge of native language consumption, presenting a fragmented supply side and underscoring the media industry’s scale impediments in this arena.
Despite contemplating innovation in content, Podimo introduces short-form podcasts, tailored news updates lasting six to seven minutes, targeting localized markets—a move akin to traditional radio news briefs.
In the face of escalating competition, including Spotify’s collaboration with OpenAI for automatic podcast translations and Apple’s expansion of creator tools, Podimo remains committed to its strategy. Jacob Bratting Pedersen, EIFO’s partner in tech and industry investing, highlights the company’s ambitions and adept team, aligning with EIFO’s vision to bolster robust tech companies in Denmark.
Podimo’s funding injection not only fortifies its global podcasting presence but also aligns with EIFO’s strategy to bolster Denmark’s tech landscape, tapping into a podcast market poised for an expected 32% annual growth in the coming years.
