In October 2024, art-tech platform Raknida revealed that it would launch an art-streaming platform that would allow people stream art like they stream music.
This is part of the company's mission to make art more accessible to people and give more underrepresented artists an avenue to be appreciated for their work.
In October Anthony “Anth” Ezeokoye and COO, Afoma "Oma" Ezeokoye admitted that art streaming would be a difficult sell in Africa, given the state of the economy, especially in Nigeria. Their idea was to take the streaming platform outside Africa and take African art to a global audience.
A month later, they are starting with one of the biggest art markets in the world — the US.
This US expansion is possible with a $100,000 grant the company received from Arch Grants, a non-profit that awards $100,000 grants to businesses in St. Louis, USA through a startup competition.
This year, 574 startups applied for the grant and Raknida is one of the 20 startups that made it. It is also the only startup in the cohort not from the US.
According to Anth, "It was a stiff competition," and interestingly, it is not the first time applying for the grant. They applied in 2023 when searching for an investment that aligned with their goals.
They almost made it to the final stage in 2023. This year, however, they won the grant and are even the only startup to be awarded an Entrepreneurship Excellence award.
What happens to Raknida now?
As an awardee of the Arch Grant, Raknida will now move 51% of its operations to St. Louis, USA. This means the company has completed the first leg of its expansion plans and has the UK and China to go.
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These are the biggest art markets globally, and per Statista, they held 80% of the art sales in the world in 2023. The US holds 42% of the market, followed by China (19%) and the UK (17%).
What's left of the market is dominated by European countries — France (7%), Switzerland (3%), Germany (2%), and Spain (1%). Raknida's founders indicated that they will be in more countries, and these markets would likely be in their business strategy.
While the startup is moving to markets where art is more profitable, it is not forgetting its mission of giving a platform to the underprivileged. The only difference now is that these artists are not just from Africa, but every part of the world.
"There are unrepresented artists everywhere, so what we are building is not digitally restricted. We are not confined to a certain region alone."
However, it plans to be more physically active in the US than in Nigeria. The founders shared that there's flexibility that comes with the grant that allows them to have a more physical business.
They are already forming strategic relations with art galleries in St. Louis.
"Last year St. Louis Art Museum had an African art exhibition; we intend to plug into such institutions."
Raknida's business in the US
Raknida revealed it will be launching an art streaming platform because there are no digital platforms where people can enjoy art.
"There's Spotify for music, there's Amazon Kindle for books, there's Netflix for movies, art will have Raknida art streaming," Anth said.
Essentially, art shouldn't just be something enjoyed by the elite. Ordinary people should also be able to appreciate art. This means that artists do not have to wait till they die before their art is appreciated by an Arabian billionaire.
While Raknida wants everyone to enjoy art as easily as they enjoy music, it is starting with markets that already have large art markets and disposable income.
While the US market might be more open to art streaming there is still a major obstacle for Raknida to tackle.
The Nigerian company is attempting to use technology to disrupt a $27 billion market that has existed for centuries. The art market is fuelled by the mega-rich. The World Economic Forum noted that the reason China's art market has grown to be one of the biggest in the world is because of its increasing number of its billionaires, which rose by 25% in 2015.
Interestingly, while the art streaming market is new, but it is already valued at $11 billion, and is expected to grow to $20 billion by 2032.
Raknida could carve a niche for itself in this growing market, but how far will its $100,000 grant go?
