Music and content recognition company Shazam has raised $40 million from Latin American telecom giant America Movil, the companies announced on Monday. Along with the investment, Shazam and America Movil are creating a strategic business unit that will focus on growing the music and content recognition business across countries like Mexico, Brazil, Chile, and Argentina.
The move shows the opportunities in rapidly developing markets in Latin America, which have populations that are quickly growing their spending on mobile devices, e-commerce and digital goods. Mexican billionaire Carlos Slim, who controls America Movil, said in a statement: “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.”
Shazam has been broadening out its music recognition service to include more general content recognition and social features, from an iPad app that can track the content you consume, to a function that recognizes TV content, to a mapping feature that shows where people are listening to which songs. Shazam raised a previous round of $32 million back in 2011 from Kleiner Perkins Caufield & Byers (KPCB), Institutional Venture Partners (IVP), and DN Capital.
Many in the London tech scene have been hoping that Shazam will be the next big IPO to come out of London’s emerging tech ecosystem. Raising funding doesn’t eliminate an IPO from Shazam, but could push that back. Shazam says in the release this morning that it has 350 million users — gaining 2 million users each week — and 70 million of those 350 million are active users.