Andrew Fisher, executive chairman at Shazam, told Techworld in 2013 that an IPO was two years away, suggesting the company will go public in 2015. 

Shazam, which has been downloaded 500 million times and has 100 million monthly users, said the funding will be used to develop its technology and expand into new markets.

Shazam CEO Rich Riley has more than 17 years experience as an entrepreneur and internet executive ©Shazam
Shazam CEO Rich Riley has more than 17 years experience as an entrepreneur and internet executive ©Shazam

The investors were not disclosed but it's understood that they have not backed Shazam before. 

Prior to today Shazam had already raised £62 million ($95 million) in funding from the likes of IDG Ventures, Kleiner Perkins and the Silicon Valley venture capital fund.

The funding brings total investment in Shazam up to £82 million ($125 million) and gives the company a $1 billion valuation (£600 million).

In order to boost user numbers and revenues, Shazam has diversified its services so that the mobile app can be used to identify other pieces of media such as TV shows, movies and adverts.

Shazam claims these new services persuade users to engage with content and brands in ways that they haven't before. For example, when the app recognises a TV advert for a particular product, it can bring up more information or content on that particular item that might encourage the user to go out and buy it.  

Andrew Fisher, executive chairman, said: “We are delighted to welcome our new investors as we further strengthen our balance sheet and continue to effectively execute on our corporate strategy.”

One of the main ways Shazam makes money is by taking a commission when a user buys a song from somewhere like Apple iTunes or the Google Play Store, after discovering it through Shazam.

However, more recently it has expanded its revenue streams so that it generates money through display advertising within its app and licences with streaming services and device makers.

“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 Rich Riley, CEO, Shazam.

“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.”