Boomkit, a music-tech startup in West Africa, Nigeria has revealed that it has acquired a user base of Ten thousand users, a feat that encourages its plans to expand continental-wise.
The music-tech is a digital platform via a mobile application that assist Independent Nigerian artists to distribute their art and manage their career.
Launched in 2021, the music tech intends to develop an ecosystem that produces, distributes and manages artists and their arts. and at the same time keeping sole ownership of their art.
Via Boomkit, artists can buy music beats from producers across Africa, and as well distribute their craft to various digital streaming platform, where thst can earn per listen. This music platform also helps artist have ingress to marketing tools the monitor the performance of their network and craft, through an in-depth analytical review service of their career,
While speaking to journalists, Boomkit’s co-founder, Abiola Hamzat, stated “Royalty collection has always been an issue for African artists, and most African artists end up forfeiting their earnings from music sales. Popular American distribution companies like Tunecore and cdbaby will require an artist to provide a PayPal account before they can process earnings, but unfortunately, PayPal is unavailable in most African countries.”
He also said, “We are able to solve the payment problem by paying artists’ earnings directly into their local bank account and in their local currencies. Artists can choose to withdraw their earnings anytime they want and also split payment with their contributors, like producers or featured artists.”
It is also Boomkit’s aspiration to create a financially accessible space for independent artists in the nation, addressing funding, Hamzat said “It is apparent that funding is a big issue faced by indie artists. Currently, traditional record labels are the only source of funding for independent artists in Africa. Funding from a regular bank is also not possible, because banks are not set up to understand what collateral they need to secure their loan against. Hence the need for an institution like Boomkit that is focused on artists and their contents.”
To significantly handle funding in its music community, the music tech is providing aids for its artists through the SupportME feature. using this feature, artists are paid a percentage of their royalty in advance to assist in the production of their craft. Through this feature, artists’ fans can also donate to artists through their Boom page.
“This creates a new source of revenue for independent artists. With royalty advance, the credit is secured against their projected earnings from music sales,” Hamzat stated.
He further stated, “In recent years, African music has grown beyond expectations, African artists are currently selling out stadiums, topping the Billboard charts, and winning the Grammy award in spectacular fashions.”
The music tech is considering the expansion of its service offering, location-wise, as with the user turnout in Nigeria alone giving it the confidence to launch out, Hamzat said, “In the nearest future we have plans to expand to South Africa and Ghana,”
Currently, Boomkit Generates revenue through three main facets, which are transaction fees, subscriptions and add-on purchases.
“Currently we are doing US$4,000 MRR at about 62 per cent profit margin. We aim to scale beyond US$10,000 MRR as soon as possible,” explained Hamzat.