Shazam, the popular app which allows users to identify songs,
has closed a $30 million investment valuing the company at over $1
billion. According to a report, the funding will
support Shazam’s continued evolution and rapid growth following a year of user
milestones, increased service capabilities and expansion into new market
sectors.
Andrew Fisher, Executive Chairman told Wall Street Journal that the new investors’ stake is equivalent to just under
3% of the company, valuing Shazam at roughly $1 billion. Though he did not
share the names of the investors, he says that they have not invested in the
company before.
“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
realize the enormous potential of Shazam.” said Rich Riley, CEO, Shazam. He
added,”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.”
The 8-year old company has not made any profit, though it has
raised $125 million in equity funding as revenue, pointed out The Verge. The company earns money from advertisements
and commissions on purchased songs that users discover using their
service.
Shazam has been
downloaded over 500 million times and has over 100 million monthly mobile
active users.
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