They arrived in Spain in June 2020, but they already had experience in Germany and Copenhagen since 2019. Now Podimo, the one called to be the Netflix of podcasts with its subscription model, closes a financing round of 11.2 million euros. An operation that, in fact, completes those of 2019 and May 2020 as a third phase. In total, 32 million euros to continue growing in the premium podcast market.
In any case, for this operation, Podimo has won over investors of all nationalities. Leading the round is Danish fund Augustinus. Along with him, the Spanish fund Aldea Opportunity Fund, one of Meridia Capital’s investment vehicles; fund that, in addition to having investment in technological capital in recent years, its focus has a long history in the real estate sector.
The interest of real estate capital in the fashion of audio
Now Meridia is fully embarking on the podcast business attracted by the pandemic momentum of certain economic activities. “This crisis has accelerated many economic activities. There were many people who did not know ours or did not have time, but with this confinement they have discovered them and investors have seen that in times of crisis this industry is the winner”, explains Javier Celaya of Podimo Spain to Explica.co. Likewise, the entry of a Spanish fund brings with it an addition:
“I think it is excellent news that a Spanish fund has entered, because we see these things happening outside the home, but not here. Spain seems to be late for everything. The fact that a Spanish fund is betting on this platform is good news. This time Spain is not late to the streaming party. From minute 1 we are part of this growth. ”
2020 closed as a year of investment in startups that was quite positive in terms of number of operations and fund activity, according to data from the Bankinter Startup Observatory report presented this week. According to their data, 2021 also started with energy and large operations, including the departure of a Spanish fund investing in a European firm.
The objective of this new round of financing, in addition to improving the platform and continuing to grow in users, has a very ambitious objective: open the doors to the Latin American market –One of the main attractions for the Spanish fund– and continue to validate the subscription model over advertising.
Going for the Spanish-speaking market with its compensation model
In a context in which a bet on live audio consumption triumphs and without the possibility of recording, which is the case of ClubHouse, the reality is that audio is becoming more important every day. Either straming or with disruptive proposals that have yet to make their way.
In this context, Podimo, unofficially present in 20 countries in Latin America, makes its arrival on the market official with local productions focused on the preferred consumption of the regions. And an app aimed at the local market. While in Spain the preferences are for entertainment, in Latin America it is current content and information that attracts users the most.
With personnel from different regions, Podimo has reached an agreement with 8 producers in Mexico, Argentina or Chile to make local production. “If you want to do it well, you have to do it there with people from there and stories from there,” explains Celaya. A system equal to that followed in Spain or Germany, prioritizing local players.
A global compensation model
Maintaining, yes, the business model that has differentiated Podimo from other platforms: the payment of benefits to content producers. If advertising on podcasts is a possibility for the United States, for Europe it is still a pending account. In this way, Podimo offers 20% of the benefits if the content is available on other platforms and 50% if it is exclusive to the platform. With more than 1000 episodes only available, for technology it is a way to attract talent.
The compensation model was a novelty, since advertising revenue was the only way of business and if you don’t have many audiences, the advertising is nil, “they explain. In any case, and without figures on the table, they point to the model” it has had an excellent reception in Spain “, assuming, of course, that there will always be more open content than premium.
The article Podimo, the Netflix of Danish podcasts, conquers Spanish investors was published in Explica.co.