Mdundo receives investment proposal as rights issue raises $1.4m

The proposal involves a directed issue of new shares, alongside a possible purchase of shares from existing major shareholders, including JVD Holding ApS, a company owned by Mdundo board chair Jesper Drescher.

According to the proposal, the investor indicated a subscription price of DKK 2.50 per share. The offer is significantly higher than the DKK 1.00 per share subscription price attached to Mdundo’s recently completed rights issue.

The Kenya-founded company disclosed the proposal at the end of April while its rights issue was open for subscriptions between 22 April and 5 May.

Mdundo said the Board of Directors, excluding Drescher because of a conflict of interest linked to his ownership of JVD Holding ApS, decided to postpone consideration of the proposal until after the rights issue had closed due to its preliminary and non-binding status.

On 7 May, the company announced that the rights issue had raised approximately DKK 8.9 million (about $1.4m) before costs, representing 87.3% of the targeted DKK 10.2 million.

Chief executive Martin Nielsen said the company was encouraged by investor participation. “We are pleased with the outcome of the rights issue and grateful for the strong support from both existing shareholders and new investors,” he said.

In a regulatory filing, the company stated that the proposal reflected ongoing strategic interest in Mdundo and its future growth prospects.

“The letter of intent is non-binding and subject to customary conditions, including due diligence, agreement on final terms, and relevant approvals,” the company said.

The board added that there was “no assurance that any transaction will be agreed or completed”.

With the rights issue now completed, Mdundo said the board would evaluate whether to proceed with the proposed investment transaction and consider the possibility of a broader strategic partnership.

The company stated that it remained open to attracting a strategic investor capable of supporting its long-term growth and shareholder value.

The latest development follows the launch of a strategic review by the company in April 2025, with Deloitte South Africa acting as financial adviser. At the time, Drescher said Mdundo had strengthened its platform, expanded its user base and increased access to subscribers through telecom partnerships.

Founded in Kenya in 2013, Mdundo is listed on the Nasdaq First North Growth Market in Copenhagen. The company said its user base had grown from five million monthly active users at the time of its 2020 initial public offering to 41.5 million users, according to its latest rights issue filings.

However, the company has recently faced operational challenges linked to billing instability among some of its largest telecom partners.

In its quarterly report covering January to March 2026, Mdundo said telco subscription transactions declined to 8.1 million during the quarter, compared with 9.9 million in the previous quarter.

The company also stated that it had reduced operating expenses by 50% compared with the previous financial year and estimated that around 20 000 direct subscribers per month would move the business closer to break-even.

Mdundo’s business model is built around partnerships with eight telecommunications providers, including MTN Group, Vodacom Group, Airtel Africa and Safaricom, giving the platform access to more than 352 million telecom customers across Africa.