Music discovery app Shazam has become one of only a handful of $1bn (£660m) technology companies in the UK, with the company’s chairman hinting that the business could opt for a stock market listing this year.
London-based Shazam, whose app tells users the name of songs playing around them, has raised $30m at a valuation of $1bn.
The cash came from three unnamed parties who were not prior investors, according to chairman Andrew Fisher, who said Shazam was not actively looking to raise funds but decided to “strengthen the balance sheet” when it was approached.
Over the past few years Shazam has expanded into TV, cinema and radio advertising, with its app offering add-on content by recognising embedded audio signals. Mr Fisher said Shazam is now “more of a media company than a music company”, and said there have now been more than 500 “Shazamable” TV campaigns in the US, as well as several in the UK.
Shazam’s management has in the past indicated plans to take the business public; Mr Fisher said: “We do believe that Shazam would be a very successful public company but we’re not commenting on timescales. The important thing about this fundraising is it gives us more options around an IPO.”
Commenting on the business’s $1bn price tag, Mr Fisher said: “The valuation is a reflection of the fact that the strategy is working and we’re making really good progress. One of the nice things that people don’t always recognise is that we’re a home-grown UK company. We’re very proud to be a UK company.”
Shazam yesterday also revealed that it now has 100 million monthly users, up from 70 million in 2013.
The company has raised more than $100m in funding from investors including Mexican telecoms billionaire Carlos Slim and Silicon Valley venture capital firm Kleiner, Perkins, Caufield & Byers.Reuse content