Carlos Slim’s America Movil invests $40m in Shazam
Backing by Mexican telecoms giant marks period of rapid growth for London-based music tagging firm
Media engagement company Shazam, known for its mobile-based music identification service, today announced a $40m investment from Latin American wireless giant America Movil in order to facilitate the service’s growth in the region.
Founded in 1999 and headquartered in London, Shazam is known for its music tagging app on mobile devices, allowing users to identify a song by ‘listening’ to it through the app.
In 2011 Shazam raised $32m in its last round of funding, following which its service was expanded to tagging television shows and adverts.
Since the last investment the firm has grown rapidly, doubling its userbase to 350 million people worldwide, growing by two million new users each week, and marking more than $300m a year of digital sales through its services.
The latest round of funding will see Shazam enter into a formal business partnership with America Movil, owned by Mexican business magnate Carlos Slim, to install the app on smartphones it sells across Latin America.
The investment will also be used to consolidate its current position in the music and television markets and develop a range of new products and services.
Shazam executive chairman Andrew Fisher said: “We are delighted to welcome America Movil as an investor in Shazam as we execute on our mission to enable people to engage with content and brands in the easiest way possible whether they are interacting with television, music or in retail environments.
“This investment will help support our continued expansion as we seek to become an increasingly important part of people’s everyday lives. With over 350 million users we are excited to be partnering with America Movil to further accelerate our growth throughout the Americas.”
Carlos Slim said: “Shazam is defining a new category of media engagement which combines the power of mobile with traditional broadcast media and advertising to create compelling value added experiences for consumers, content providers and brands.
“We are excited to bring this innovation to America Movil subscribers as we continue to further differentiate our services as the market leader in Latin America.”