KAMA FLOW invested in Russian digital music distribution service YOURTUNES

Russian digital music distribution service YOURTUNES has raised RUB 20 million from Sulak Capital LLC, a subsidiary fund of investment company KAMA FLOW, and venture fund Malina VC. The funds from the deal will be used to increase the user base, automate processes and enter new market segments.

The startup, launched in 2020, offers independent artists a full cycle of solutions: from automated uploading of releases to streaming platforms to monetisation and promotion. YOURTUNES has already demonstrated dynamic growth of 3.7 times per year - in 2023, the service's revenue totalled RUB 5.8 million, and in 2024 - RUB 22 million. 

In 2023, the startup raised RUB 16 million from Andrey Makeev, founder of Flowwow, an international online flower delivery platform, and Roman Loginov, as well as winning the MTS Startup HUB programme and entering the RB Choice 100 ranking of the most promising companies in the industry. In 2024 YOURTUNES won the Sprint: The Future of Code award for the best content creation solution from Mincifra and FRII and won at the Exit Conference about new technologies, business and investments. It also attracted investment from Alexey Markov, author of the bestselling Hulinomics series, which has a combined circulation of about 200,000 copies. 

Ilya Merkulov, Investment Manager at KAMA FLOW: ‘The music industry is seriously changing and it is critical for musicians to remain independent in it. YOURTUNES allows artists to keep 100% of their income and copyrights thanks to its subscription mechanism and focus on DIY musicians. We are already seeing strong growth of the service in Russia and the first steps to enter Latin America. Our cooperation is aimed at scaling the business, developing new technological solutions and creating an ecosystem where original artists can effectively monetise their creativity’.

Anton Pronin, Managing Partner of Malina VC fund notes that the volume of venture capital investments in Russia has doubled in 2024, with significant growth noted specifically in the B2C segment. ‘We see unrealised potential in user-generated content, and YOURTUNES lowers barriers to entry for content creators and opens up a new user scenario,’ Pronin added.

The tectonic shift in the music industry, expressed in the decentralisation of revenues, the transition of streaming services to new content payment models and the development of AI technologies, allows independent artists to enter the forefront more actively. The project's target market is approximately RUB 7.2bn. The figure is based on calculations that take into account the global market benchmark - the number of music creators aged 13 to 39. Subscription models and ecosystem solutions that can increase the monetisation of independent artists' work are a priority for YOURTUNES. The service eliminates intermediaries, simplifies monetisation and strengthens its position in the creative economy, offering musicians new ways to earn money.