MUSIC discovery app Shazam yesterday joined the $1bn (£662m) tech company club, by valuation, after it raised $30m in a new funding round and as it pushes towards a potentially lucrative initial public offering (IPO).
The British company said the money would allow it to develop its technology and expand into new “market sectors”.
Shazam has not identified who is behind the investment, but executives have said that the backers have not previously invested in the company.
Shazam is used to identify unfamiliar songs by opening the app, holding one’s smartphone or tablet to the radio or TV to “listen” and then the technology identifies the song within seconds.
The company said it had more than 100m monthly active mobile users and its app had been downloaded more than 500m times.
Andrew Fisher, the executive chairman, said in a statement: “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 company makes money by taking a small commission from the sale of digital music, largely through Apple’s iTunes online store, when users buy a track after finding it through Shazam.
Shazam was founded in London in 2002, by Rich Riley, its chief executive, a former Wall Street analyst and Yahoo executive.
He now runs the firm from New York.