This app has joined the $1B valuation club

Shazam has become the latest technology company to be valued at $1 billion despite the music identification app still recording a loss.

The London-based company joins the prestigious $1 billion valuation club of which private companies such as Uber, Airbnb and Snapchat are members.

The London-based company which launched in 2002, allows users to identify a song which is playing at the tap of a button on the app. Shazam raised $30 million in its latest round of funding, giving the company a $1.03 billion valuation, the app's executive chairman told CNBC.

Shazam
Simon Dawson | Bloomberg | Getty Images

"I can tell you it's a combination of institutional investors and private funding," Andrew Fisher said in a phone interview, not wishing to disclose the name of the investors. The funding round gives the new investors a stake equivalent to "just under three percent", Fisher added.

The latest round of funding comes despite Shazam reporting a pre-tax loss of £5.3 million ($8 million) in the six months to December 2013 on revenues of £16.9 million.

But the app has been liked by high-profile investors including América Móvil boss Carlos Slim who poured $40 million into the company in 2013.

Expansion

And Shazam is looking to expand aggressively in order to diversify revenues and their business model.

The company recently announced a tie-up with music-streaming service Spotify where users can identify the song with Shazam and play it directly through the music-streaming app. It has also recently been updated so that it works with Apple's latest mobile operating system, iOS 8.

While music is core to the company, Fisher told CNBC that the company is looking to use its app to tap advertisers. The company already has a deal with British carmaker Jaguar where users can use the Shazam app when the car company's advert is playing and the uses will be taken through the user to the Jaguar website.

Shazam CEO: Beyond the music
Shazam CEO: Beyond the music   

Shazam is hoping to make more of these types of partnerships in the future with retailers, with the company taking a fixed fee for an advertising campaign.

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"Our proposition is about bringing hundreds of millions of users to the brands and content owners by bringing value added experiences," Fisher said.

IPO ahead?

The app has now crossed 100 million monthly active users, and analysts said maintaining rapid user growth will be key to the company's future success in the advertising market.

"Shazam has to maintain that user base and unless it does that it won't have that platform for building those advertising related services," Jack Kent, senior mobile analyst at IHS, told CNBC.

Now Shazam has joined the likes of Uber and Airbnb, speculation is increasing that it could soon be considering going public. Fisher did not rule out an initial public offering but said Shazam is not "giving guidance" at the moment.

"We do have a strong belief that Shazam will make a successful public company. We are open minding at this point in time," Fisher said.