The podcasting industry is rapidly growing, with more than half a billion people tuning in. An independent player in this space, Podimo, has announced a new round of funding to support its expansion.
Podimo, a podcasting startup based in Copenhagen, operates on a subscription model similar to Netflix. The company has raised €44 million ($48 million) in funding to further develop its production tools, expand its distribution network, and strengthen its localization efforts. Currently available in several European countries and Latin America, Podimo charges between $5 and $7 per month to listeners and higher rates to creators for using its platform. The company plans to extend its presence to more countries.
Podimo’s user engagement has increased, with an average of 20 hours per month, and its subscription base has grown by 80%. While the company did not disclose its exact number of subscribers, it revealed that around 350 shows are published weekly and approximately 350 creators are currently using the platform.
The funding round was led by the Danish Export and Investment Fund (EIFO), with participation from HighlandX and Augustinus Fabrikker. Prior to this round, Podimo had raised over €200 million. The company is now profitable in its home market of Denmark and aims to achieve profitability in other markets as well.
Podimo’s funding and growing user base come at a pivotal time for the podcasting industry. While the audience for podcasts is expanding, both podcasting platforms and creators are facing challenges to make a sustainable business. Major players in the industry, such as Spotify and Google, are encountering difficulties in their podcasting endeavors.
Podimo distinguishes itself as an independent offering and aims to be a comprehensive platform for creators, providing production tools, distribution services, and metrics tracking. The company plans to focus on creating “hyper-local” content in different languages.
While the podcasting landscape continues to evolve, Podimo faces the challenge of differentiating itself and maintaining profitability amidst increasing competition. Major players like Spotify and Apple are also innovating with new features and services for creators.
Jacob Bratting Pedersen, partner in tech and industry investing at EIFO, expressed confidence in Podimo’s potential for international expansion and its alignment with the growing podcast market.
