Audio subscription service Podimo raises €58.6M
Podimo, a Copenhagen-based podcast and audiobook subscription platform, has raised €58.6 million in new funding, CEO Morten Strunge tells Axios.
Why it matters: Cue the M&A. The funds from this latest round, less than a year after its Series B, will be put toward market expansion in part through content and tech acquisitions over the coming months.
Details: The round was led by 83North, Highland Europe and Saban Ventures. Chr. Augustinus Fabrikker, Heartcore and Headline also participated. All are existing investors.
- It's raised about €162 million in total, most recently closing a €69.3 million Series B in November 2021.
- "We're actually ahead of plans and have also spent less cash than anticipated," Strunge says. "With the changing environment in the world, we've decided to go for longer runway so that we could pursue the continuous growth that we're looking for."
The intrigue: Podimo completed its biggest acquisition to date earlier this year with Dutch podcast publisher Dag en Nacht.
- Similar to how that deal "jumpstarted" the platform's expansion into the Netherlands, Strunge says Podimo is looking to acquire more content studios in other regions.
- "We can develop a show one by one, or we could acquire a proven production company or an IP owner that sits with a bunch of shows," Strunge says.
- Podimo is also exploring tech acquisitions that could improve its product experience.
By the numbers: Podimo has 225 employees, after doubling its count from 2021.
- Strunge declined to disclose revenue or valuation, but he says the company will reach profitability from this latest funding round. Its first market, Denmark, is profitable itself.
- "It's cheaper to produce audio than it is to produce video, and we're not relying on rights holders like in the music industry," Strunge says. "Our margins are improving rapidly."