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Singa Oy

Finland
Convertible
Invesdor Alumni
Growth company
International
Growth Market

Singa modernises karaoke — the last analog bastion of the entertainment industry
Marketing content

Key investment highlights

Singa is on track to disrupt an underserved $15 billion karaoke market and become a global market leader in 3 years.

Singa has developed the most advanced streaming technology suite of products in the market accompanied by a modern user experience with the help of AI-powered backend content tools.

Singa is backed by top anchor investors and music industry legends, such as Maki.vc, Superhero Capital, including co-founders of Supercell, Wolt, Epidemic Sound, and AudioShake. These have already invested EUR 1.64 million on materially equal commercial terms via a separate convertible bond agreement.

First name last name, position

“With our last Invesdor funding campaign in late 2021, we raised a record-breaking 3.6 million euros which we promised to use wisely for US launch, global music licensing, and expanding our R&D efforts. 

We delivered on all three points. Our US operations revenue is growing fast at 14% average month-over-month pace, we’ve secured record breaking 14,000+ global licensing deals and expanded our development and operations team to support our growth across 34 countries and a premium product line-up. Overall our ARR grew 70% over the last 12 months despite the Omicron lockdowns weighing us down heavily during Q1 and Q2 of 2022. 

Due to the wobblyness of the macroeconomic forecast and the looming recession scare, the next strategic step for us is to reach cash flow neutrality by the end of H1/2024 while also maintaining a strong, but sustainable 100% YoY growth pace. To do this, we’ve secured an anchor investment of 1.64 million euros from our current lead investors Maki.vc and Superhero Capital, as well as from the co-founders of Wolt, Supercell, Epidemic Sound and AudioShake. With their support and advice we’re confident we can achieve our next set of goals.

Now you have a chance to join us in our mission with the materially same commercial terms as the anchor investors.” 

Atte Hujanen, CEO

Investment information

Type:
Convertible Bond
Subordinated:
no
Invested so far:
€598,600.00
Price per bond:
€100.00
Min offer:
5 Units
Discount at conversion:
20.00 %
Base interest rate p.a.:
10.00 % p.a., bullet
Maturity date:
30/09/2026
Funding purpose:
Growth
Broker:
Invesdor GmbH
License:
ECSPR

Overview

Company profile

Singa Oy is an entertainment company founded in Helsinki, Finland in 2015. The company has built the first truly digital streaming service for karaoke to create the ultimate singing experience and disrupt an underserved $15 billion global karaoke market.

Karaoke is a popular form of entertainment and a big untapped business opportunity. While other entertainment industries have moved to digital distribution, the company states that karaoke is still stuck in the ’90s, with expensive and bulky equipment, 8-bit graphics, and dodgy karaoke videos. Singa believes that singers, karaoke venues, as well as artists, and music rights owners across the world deserve better.

Since 2015, the company has expanded to 36 countries and grown into a 45-strong team aligned to do for karaoke what Netflix has done for movies and Spotify for music — to revolutionise the entire industry. 

Singa timeline

Developments since the last funding round with Invesdor

Find out more about what has happened since the last crowdfunding.

Products & business model

Singa is serving both karaoke venues and consumers. For consumers, the Singa karaoke app give access to the largest licensed karaoke catalogue today on any device. One can sing by its own, make it a party with friends, or use Singa's finder feature to spot the nearest Singa-powered karaoke venue.

On the B2B side, Singa helps bars and other nightlife venues grow their revenues with modern karaoke, background music, and display advertising software. Singa has a rapidly growing network of over 1300 Singa-powered venues including some of the biggest hospitality companies in Europe, North America, and Australia. 

Singa charges subscription fees from its B2C and B2B customers as monthly payments for unlimited access to the karaoke catalogue it distributes via its apps. Of the revenue that Singa receives from its customers as subscription fees, some is paid to music publishing rights owners, performing artists and record labels. 

60 % of Singa's contract-based Booked Annual Recurring Revenue (ARR) of €5.000.000 comes from the B2B business (bars, entertainment venues and other commercial venues). The company expects the volume of the consumer business to overtake the B2B side in 2025-2026.

Competitive advantages

Singa is uniquely equipped to become the market leader because of its strong head start in building the most advanced technology, deep investment in music licensing, and building a whole ecosystem around karaoke, including both B2B and B2C.
Singa's unique approach:

  • Singa works on any platform, is agnostic to file formats, and can licence any content for use in the service. 
  • Singa is the first company in the world that can utilise original master recordings for karaoke use.
  • Singa uses machine learning to remove lead vocals from original recordings and time karaoke lyrics automatically to match the song. 
  • The use of tracks and music is completely transparent to the rights holders.

Description

Market

Singa market entry plan

The popularity of karaoke and the market never stopped growing, but very little innovation has been seen in the industry. The karaoke industry is highly fragmented and low-tech. Singa is changing that. Services like Spotify and Netflix have trained audiences to crave high-quality digitised entertainment experiences anywhere, anytime, and on any device, and, Singa is the underlying source for all the world’s karaoke.  According to the company the total karaoke market including hardware, software, and content is currently worth over $15 billion. The karaoke machine market alone is predicted to reach $5.7 billion with CAGR of 2.52 % by the end of 2024 (Market Research Future). 

New ways to enjoy singing have been piloted by the biggest music streaming services like Spotify and Apple Music, as well as various mobile apps such as TikTok, creating increasing demand for services rendering full karaoke experiences. For example, in China alone, the online karaoke business grew to $2.5 billion in 2022, up threefold from $829.5 million in 2017, as predicted by iiMedia.  

Management

  

Atte Hujanen

Atte Hujanen

CEO, Co-Founder and Member of the Board

Atte Hujanen is the CEO at Singa since 2015. Previously as CEO, he scaled Karaoke World Championships to world's largest amateur singing competition in more than 40 countries. As COO and co-founder he scaled the Slush conference from 300 to 25 000 attendees.

  

Tomi Pajunen

Tomi Pajunen

CTO and Co-Founder

Tomi Pajunen is the CTO at Singa since 2015. He has 20 years of coding experience and is an active open source contributor.

  

Nils Paajanen

Nils Paajanen

COO and Member of the Board

Nils Paajanen is the COO at Singa since 2016. Formerly, he was an Investment Manager at venture capital fund Inventure (€ 200m AUM). He also worked in Business Development at Andreessen-Horowitz-backed YourMechanic in San Francisco and has 10+ years of startup experience.

  

Jouni Pesola

Jouni Pesola

CMO

Jouni Pesola is the CMO at Singa since 2017. Formerly he worked as Country Manager Nordics & Baltics at music streaming service Deezer. His last role in the company was Senior Marketing Manager at the company’s London Headquarters. Jouni is also an independent musician and record producer and has 10 years of music industry experience.

  

Risto Mäkeläinen

Risto Mäkeläinen

CCO

Risto Mäkeläinen is the CCO at Singa since 2016. Formerly he worked with brand and marketing operations at EY and City of Helsinki. He is also a co-founder of the scent marketing pioneer Finscent and has 10 years of startup experience.

  

Ilkka Kivimäki

Ilkka Kivimäki

Chairman of the Board

Ilkka Kivimäki is Co-Founder, Partner at Venture Capital fund Maki.vc
Formerly, he was a Partner at Venture Capital Fund Inventure and Chairman of the Board at Wolt, Umbra 3D, Beddit, AImotive, Slush, Startup Sauna, Kasvuryhmä, Startup Foundation and an active member of multiple other initiatives and businesses in Finland.

Company structure

Singa Oy 
Parent company. Finnish limited company. 

Singa Karaoke UK Ltd
UK Subsidiary. 100% owned by Singa Oy

Singa Karaoke Inc
US Subsidiary. 100% owned by Singa Oy

Investors invest in Singa Oy
 

Distribution of company shares

Shareholder

Common
Shares 

A
Shares 

Options (Common Shares) 

Total (fully diluted)

% (fully diluted)
1

Maki.VC Fund I Ky 128.400  2.956.321  0 3.084.721 21,46 %
2 Superhero Venture Fund 2015 Ky 0 1.857.853  0 1.857.853 12,93 %
3 Atte Hujanen 1.250.000  0 353.438 1.603.438 11,16 %
4 Initial Capital IV L.P. 0 1.071.995  0 1.071.995 7,46 %
5 Reaktor Ventures Oy 0 589.856  0 589.856 4,10 %
6 Kristian Pentti 0 325.628  0 325.628 2,27 %
7 Superhero Opportunity Fund 2022 Ky 18.500  243.953  0 262.453 1,83 %
8 Nordic Makers Invest 22 IVS  0 215.607  0 215.607 1,50 %
9 Corporatum Oy 0 210.637  0 210.637 1,47 %
Other employees & Co-Founders (options) - - 4.321.562 4.321.562 30,07 %
Other shareholders  125.000 705.046  0 830.046 5,77 %
TOTAL 1.521.900  8.176.896  4.675.000 14.373.796 100%

Options

The company has an option pool for co-founders and employees totalling 4 675 000 options. The fully diluted amount of shares including registered shares and options is 14 373 796.

Developments at Singa since the last funding round

In Singa's last funding round with Invesdor in 2021, the company raised 3.6 million euros which Singa promised to use for US launch, global music licensing, and expanding R&D efforts.
Singa delivered on all three points. The US operations revenue is growing fast at 14% average month-over-month pace. Singa has secured record breaking 14,000+ global licensing deals and expanded their development and operations team to support the growth across 34 countries and a premium product line-up. Overall the ARR grew 70% over the last 12 months despite the Omicron lockdowns weighing the company down heavily during Q1 and Q2 of 2022.

Use of funds

Description

Consolidate growth in the US market

The primary use of new funds.

Singa has successfully entered the North American market and is now looking to scale. The company expects to invest heavily in recruiting and brand awareness activities in the US market. 

Description

Global licensing

The additional funds allow the company to keep up the ongoing large-scale licensing initiative that will enable a global rollout of the service on the back of the licences which have already been secured for North America and other global markets. 

Description

Expanding R&D

R&D investments will expand the service to new verticals and use cases growing the addressable market significantly. The new funds aren’t primarily focused on R&D efforts, as the company has already achieved the first phases of product-market-fit and is in the process of scaling internationally with a proven model and existing revenue flows.
 

Use of funds

Financial figures & growth

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Conversion & exit scenarios

The founders, team and investors strongly believe that Singa can grow to become a large independent company and therefore highly prioritises an IPO as a future exit scenario. The board will consider every and all trade sale offers that might be presented in the future. For now the company is not exploring any specific exit scenarios and is solely focused on growing the business.

In the event of a conversion, the bondholder undertakes to adhere to the project owner’s Minority Shareholders’ Agreement (dated 26.11.2021). Please read more about investor rights in the Key Investment Information Sheet (KIIS) under Part F: Investor rights.

Documents

Investment related documents

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Updates

Investor Webinar on Wednesday 7 June 2023

Journalist Benjamin Webb interviews Singa CEO Atte Hujanen and COO Nils Paajanen. They also answer questions.

See the recoring here

Singa in the press

Sijoittaja.fi
Haastattelussa Singan johto – karaoken markkinajohtajaksi viidessä vuodessa 

Singa pyrkii vakiinnuttamaan kasvunsa Yhdysvalloissa vaihtovelkakirjalainalla

Startup Valley News
Figure out the leverage that you need and the leverage you have

Kauppalehti
Suomalainen karaokesovellus keräsi 1,9 miljoonaa rahoitusta – Riskisijoitukselle luvataan ”reilua tuottoa”

Yksityissijoittajilta rahoitusta hakeva Singa tarjoaa mukavaa tuottoa, mutta Vaihtovelkakirjalaina ei ole ongelmaton sijoituskohde

Kauppalehden tiedotejakelu - Singa hakee 5 miljoonaa euroa kasvuun – takana onnistunut vuosi 

Talouselämä
Karaokesovellus Singa tarjoaa sijoittajalle mukavaa tuottoa, mutta vaihtovelkakirjalainoissa piilee merkittäviä riskejä

Salkunrakentaja.fi
Singa modernisoi karaokea maailmanlaajuisesti ja hakee rahoituksella vauhtia – takana onnistunut kasvuvuosi 

Tivi

Suomalainen karaokesovellus keräsi 1,9 miljoonan raharuiskeen – riskisijoitukselle luvataan ”reilua tuottoa”

Update on 1.6.2023

The EBITDA growth % figures in the financial figures & growth section were corrected on 1.6.2023. 

New information will be added to this section regularly as funding progresses. To be informed about new updates in a timely manner, subscribe to our newsletter.

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