Bloomberg — The Danish podcast platform Podimo, which creates shows with Walt Disney Co. and Warner Bros. Discovery Inc. in Europe and Latin America, raised 58.6 million euros ($58.6 million), funds that it will use to expand its programming and geographic footprint.
The round was led by 83North Ltd., Highland Europe and Saban Ventures, all existing investors, the company said. Podimo raised 78 million euros in November. Its total funding now stands at 162 million euros.
The latest investment will go toward acquiring more shows and intellectual property, while also supporting expansion to new markets and possibly deals in the technology area, founder and Chief Executive Officer Morten Strunge said in an interview. Until now, Podimo has spent the majority of its money on programs, he said.
“Demonstrating growth is not enough these days, you have to show sustainability in your business model and show you’ll someday be profitable,” Strunge said, adding the company expects to become profitable in the markets where it now operates, without additional capital.
Podimo sells subscriptions to its podcast platform and exclusive content in six European markets, as well as in Latin America, all in different languages for local listeners. It has signed deals with Disney, IHeartMedia Inc. Wondery and Warner Bros., and acquired a podcast company in the Netherlands, Dag en Nacht Media.
Strunge wouldn’t share the number of subscribers Podimo has around the world, but said it’s grown fivefold in the past year, with the average user spending 20 hours a month listening.
“We’re winning on being very local and establishing teams on the ground consisting of content developers and creator relations and so forth,” he said.
Podimo is vying in a crowed landscape of European companies looking to capitalize on audio entertainment. PodX Group AB plans to spend $10 million to $15 million this year to acquire independent podcast production companies, Bloomberg News reported last week. Industry leader Spotify Technology SA has spent more than $1 billion on podcast-related acquisitions, while another Swedish company, Acast AB, went public last year with similar goals.
Podimo, for now, is mostly focused on subscription revenue, though Strunge said advertising will likely factor into the business at some point. In a report last week, B. Riley Securities, estimated podcasting ad revenue will surpass $6 billion by 2026.
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