The popular music app Shazam announced on Wednesday that it had raised $30 million in a funding round that valued the British company at roughly $1 billion, doubling what the company was valued at just a year ago.
Shazam uses audio-recognition technology to allow users to detect songs by holding their mobile device next to a television or radio. It then generates revenue from taking a percentage of sales from music found and mobile advertising.
Chairman Andrew Fisher told Bloomberg that “a couple billionaires” were in the mix of investors who have helped flourish the music app.
“This funding reflects the substantial progress we have made in delivering a new paradigm for brands and content owners to increase engagement with their audiences whilst magically connecting people to the world around them,” said Fisher. “We are delighted to welcome our new investors as we further strengthen our balance sheet and continue to effectively execute on our corporate strategy.”
The Shazam app now includes music news, real-time trending songs and expanded charts. It has been downloaded over 500 million times and has over 100 million monthly mobile active users. But despite this, the app hasn’t turned a profit since 2006.
Shazam Chief Executive Rich Riley said the company is “intentionally not profitable” as it invests in technology and staff, growing to 250 employees globally. “Our vision is to connect people to the world around them,” Riley said. “It is still early days. People aren’t yet used to ‘Shazaming’ print ads and soda cans and that kind of stuff, but we think that is where the world’s going.”
Back in December, the app was enhanced to give Spotify or Rdio users the ability to listen to full tracks inside the Shazam app.
