Africa’s industry-leading music label, Mavin Records has secured a “multimillion-dollar” equity investment partnership with Kupanda Holdings, to support the Lagos-based label’s expansion drive. The actual amount invested was undisclosed.
Mavin Records has had a rather quiet 2018, reeling in the shadows of upcoming and competing music labels, who have dominated airwaves and captured much-courted revenues from brands and events organisers in a year that was considered huge for the music industry. This is the first major equity investment in a record label in Nigeria and could catapult Mavin, once again to the top.
In a statement sent to Nairametrics, Mavin Records intends to scale operations to meet the rapidly growing international demand for African music. The deal will afford the label an opportunity to increase its artists’ roster, and strengthen its services across A&R, touring, marketing, distribution, publishing, and partnerships.
Since its establishment in 2012, Mavin Records has been a platform for growth in the music industry and according to Mavin Global President and Founder, Michael Collins Ajereh (a.k.a Don Jazzy), the mission is to grow Mavin Global into the music powerhouse of Africa.
“By collaborating with artists, African creatives, local and international partners, we can become a globally recognised household name and the go-to platform for connecting African music with the world.
“Our mission is to grow Mavin Global into the music powerhouse of Africa.”
Mavin has been an industry leader in leveraging digital platforms like Youtube, Twitter and Instagram, both to reach local audiences and grow significant fanbase among African diaspora in the US, Europe, and among the beneficiaries are Tiwa Savage, Korede Bello, Johnny Drill, DNA, and Reekado Banks. This investment will enable the company to strengthen this advantage as it develops brand partnerships that support its artists’ values and stories, the statement disclosed.
“With the resources and operational capacity Kupanda Capital brings along with its investment, Mavin is now ready to grow our artist roster and facilitate partnerships at a global scale. We are looking to build an institution that will support the fantastic creative ecosystem in Africa, and move Afrobeats to the forefront of the global industry,” said Tega Oghenejobo, Chief Operating Officer of Mavin Global.
Meanwhile, one of Mavin’s signee, Korede Bello, sees the partnership between Mavins Global and Kupanda Capital as a welcome development that promises growth for artistes under Mavin Records.
“I’m overjoyed to be part of this new era for Mavin. With the support of this team, I’m excited to release new music for my fans and connect with even more music lovers across the world.” – Korede Bello
Deal in the works
According to Tega Oghenejebo, COO of Mavin Records discussions with Kupanda about investing in Mavin has been ongoing for over 3 years. He also revealed that Mavin had also gone through a series of due diligence culminating in Kupanda’s decision to invest in the label. “Without the structure we have, this deal would not have come through,” he told Nairametrics Founder, Ugodre.
With this investment, Mavin can not invest in signing up artists not just in Nigeria but across Africa. The funds will also be utilized to invest in music production and other promotional activities.
Factors that aided the deal
Nigeria is the most populous country in Africa with a population of 180 million, and its music industry is projected to grow rapidly with increasing smartphone penetration and the popularity of Youtube, Twitter, Instagram and other digital streaming platforms. Across Africa, in cities like Lagos and Abidjan, the market for live shows is increasing as well.
Meanwhile, according to the most recent publicly available data from industry trade body, IFPI, the global recorded music market grew by 8.1% in 2017, reaching $17.3 billion on the strength of digital streaming revenue. That growth is expected to have continued in 2018, presenting an excellent environment for Mavin to market its music globally.
Kupanda Capital’s statement
Kupanda Capital believe Mavin Global is well positioned to bridge the gap between Nigerian music and global market, with a record label that will accelerate the promotion of African popular music to the world.
“Between Don Jazzy’s leadership in defining the sound of modern Afrobeats and developing top African artists, Mavin Global has a unique advantage and opportunity to build the record label that will accelerate the promotion of African popular music to the world. We are impressed by the Mavin team’s experience and are pleased to partner with them in their next phase of growth.” – Bobby Pittman, Co-Founder and Managing Partner at Kupanda Capital.
Nairametrics understands Kupanda may have taken a major stake in Mavin giving it significant say in the strategic direction of the company as well as operations. We also understand this investment could be a precussor to further investment in the record label.
About Mavin Records and Kupanda Holdings
Mavin Records is Africa’s leading record label. Founded in Lagos in 2012 by legendary producer Michael Collins Ajereh (Don Jazzy), Mavin has produced some of the iconic artists and songs of this decade and has shaped the sound of Afrobeat music. Its roster spans genres from Afrobeats to alternative rock to rap. Current artists include Tiwa Savage, Korede Bello, Johnny Drille, Di’ja, D’Prince, Dr. SID, Ladipoe, DJ Big N and DNA.
Kupanda Holdings, on the other hand, is a joint venture between Kupanda Capital and TPG Growth. TPG Growth is known for its ability to grow and scale businesses, and TPG’s investments include media heavyweights like Spotify, CAA, STX, Vice Media and Cirque du Soleil globally, and TRACE media in Africa.