Sound recognition app Shazam achieves $1bn valuation with $30m investment
3 min read
21 January 2015
London-headquartered mobile business Shazam has secured a $30m investment, which takes the company value to more than $1bn.
Shazam has come a great distance since launching in 2002 with its seemingly simple song recognition service, which required mobile users to dial a number in order to receive the details of music playing.
Fast-forward to the present day and the emergence of smartphones and technological advancements have enabled Shazam to rapidly expand and adapt its services to support the needs of today’s businesses and consumers – likely why it continues to secure investment, and how the latest $30m fund has taken the company value to $1bn.
With apps now available on iOS, Android, Windows and Mac, Shazam is now able to detect not just songs, but also media on TV and in cinemas, which has allowed it to secure high profile partnerships with the likes of the Super Bowl, the Grammy Awards, ITV, Jaguar, Disney, Cornetto and Pepsi.
The idea is that customers who engage with advertisements via their phone are able to access more interactive and detailed content than a 30-second commercial can provide and, in some cases, freebies.
Additionally, Shazam has also introduced support for beacon technology, which provides targeted deals to mobile users based on their location.
In terms of going back to its music roots, the app lets users view artist profiles, upcoming tours, videos and more. Meanwhile, European fans of singer Demi Lovato were able to help schedule her tour across the continent in 2014, with venues selected based on the locations that her music was tagged in.
Andrew Fisher, executive chairman, said: “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.”
The capital will be used to “support Shazam’s continued evolution and rapid growth”, building on the current 500m downloads and 100m monthly active users embracing the platform.
Rich Riley, CEO, Shazam, added: “We’re excited to continue to focus on user growth and engagement, building on our strength in music and innovating to increase the universe of what is Shazamable in order to realise the enormous potential of Shazam,” said. “Our move into multiple new environments in 2014 has allowed our users to connect to more aspects of their world while enabling our partners and advertisers to reach our massive and engaged user base like never before.”