The podcasting industry is witnessing a surge in popularity, with nearly half a billion people tuning in to various podcasts worldwide. One of the independent players in this booming industry, Podimo, a Copenhagen-based startup, is making a significant splash. The company, known for its Netflix-style monthly subscription model, has announced raising an impressive €44 million ($48 million) in an all-equity funding round.
Podimo is a podcasting startup based in Copenhagen, Denmark. The company has adopted a Netflix-style monthly subscription model. Its primary focus is on creating a strong platform for podcasts, expanding its distribution network, and enhancing its production tools.
Podimo’s latest funding drive resulted in an all-equity round, raising €44 million ($48 million). The company plans to utilize these funds to enhance its production tools, expand its distribution network, and delve deeper into localization.
“Our investment in Podimo fits directly into EIFO’s strategy to contribute to maintaining strong tech companies in Denmark,” said Jacob Bratting Pedersen, partner in tech and industry investing in EIFO.
In the past year, Podimo has experienced substantial growth. The company’s average user engagement time has shot up to 20 hours per month, and its subscription base has grown by 80%. However, the CEO and founder, Morten Strunge, has chosen to keep the actual subscriber numbers under wraps.
Currently, Podimo has a presence in Denmark, Norway, Germany, Spain, The Netherlands, Finland, and Latin America. The company charges its listeners a monthly subscription fee ranging between $5 and $7. The plan is to expand to more countries.
Despite the apparent growth of the audience, the podcasting industry presents a tough challenge for businesses and creators alike. Spotify’s $1 billion bet on podcasting, which included exclusive deals with high-profile names and platform investments, hasn’t paid off as expected. Google chose to shut down its standalone podcasting app, integrating it into YouTube instead. Similarly, SiriusXM decided to close Stitcher, a well-established name in the podcasting industry, just three years after its acquisition.
Unlike Spotify and Google, Podimo remains an independent offering. While this gives the company agility, it also presents the risk of being overshadowed by the business priorities of the larger platforms. Despite this, Podimo’s position as a “one-stop-shop” gives it a unique edge in the podcasting industry.
Podimo allows creators to produce content, distribute it on Podimo and other podcasting platforms, and gather metrics on all activities. The company also provides a platform for including “native” advertising within the content through its ad business.
Podimo plans to take its model further by focusing on “hyper-local” content. This includes producing more content in different languages and providing more localized information to people. The company has also started creating short-form podcasts, much like the news briefs one might come across on traditional radio.
The significant challenge for Podimo is to continue differentiating itself in a market teeming with competition and to do so profitably. With Spotify partnering with OpenAI to create automatic translations of podcasts and Apple expanding its creator tools, the competition is certainly not letting up.
Jacob Bratting Pedersen, a partner in tech and industry investing in EIFO, stated:
“We see in Podimo a tech company with big ambitions, and with a super professional team behind it, which can execute on the powerful, international expansion plan. In addition, the podcast market is favored with an underlying growth of an expected 32 percent annually for the next several years.”
Podimo’s recent €44M funding will undoubtedly be a significant boost for the company’s expansion plans. As the podcasting industry continues to grow, it will be interesting to see how Podimo leverages this growth to enhance its offerings and expand its reach.
With an intriguing business model and an ambitious expansion plan, Podimo is definitely a player to watch in the rapidly evolving podcasting industry.