Real-time discovery and sharing app provider Shazam has closed a round of funding in order to expand from its core music business and further into TV.
The company, who claims to be adding more than a million customers per week, and who also claims nearly 150 million users, has raised $32 million in new funding led by Kleiner Perkins Caufield & Byers (KPCB) and Institutional Venture Partners (IVP), with a further participation by existing investor DN Capital.
Explaining why his company entered the finance round, Dennis Phelps, General Partner at IVP said: “Over the last 12 months, Shazam has seen a 100% increase in the number of people downloading its mobile application each week, making it an integral part of their life...With four million tags a day, Shazam is uniquely positioned to capitalize the increasing propensity of consumers to use their mobile devices for discovery, sharing and commerce.”
Even though music will be the company’s mainstay, the investment will be used to support the company’s plan to grow into TV which is seen as a natural evolution of its technology.
The TV proposition will be headed by the clearly branded Shazam for TV product which has already been incorporated into shows from NBCUniversal and MTV.
Shazam is confident in the success of the TV product given that it believes that networks and advertisers don’t have to invest in establishing a new behaviour to further engage with their audience. Indeed, Shazam asserts that networks and brands can give their viewers an unobtrusive second screen experience without interrupting what they’re watching, with an interactive experience that gives viewers more information about shows and products.
Outlining the move into TV, Andrew Fisher, Shazam CEO said: “Music is still at the core of our DNA and will always remain fundamental to who we are...we are excited to have delivered the same powerful discovery experience for broadcasting and advertising that people have always loved with music. This investment will support our continued growth, both organically and through acquisition, as well as the ongoing development of new features and products, keeping us at the forefront of innovation.”