Music discovery app, Shazam has announced that it raised $30m (€26m) in its latest round of funding which values the company at over $1bn (€860m) - it is claiming to be the first UK mobile app to pass that milestone.

The app can recognise songs by listening to them - it then allows users to buy or stream these tracks. Shazam claims that 10 percent of all digital music sales originate from the app.

When this music is sold it can be traced back to Shazam, and the app gets a cut of these sales.

Its other revenue streams are mobile marketing and tie-ins with broader advertising campaigns - for example companies will invite users to scan audio with Shazam during their TV adds to claim promotions and enter competitions.

Some analysts are wondering why so much money is being invested in the app - in 2013 it experienced a net loss of €2.6m on revenues of €40m.

In March of 2014 it was valued at half a billion US dollars - today's announcement means that this valuation has doubled in 10 months.

CEO Rich Riley has said that the service has not been returning profits because it has been investing in technology and personnel. The strength of this valuation will be tested if the company is floated on the stock market.

Shazam's Executive chairman, Andrew Fisher welcomed the latest investment: "This funding reflects the substantial progress we have made in delivering a new paradigm for brands and content owners to increase engagement with their audiences whilst magically connecting people to the world around them. We are delighted to welcome our new investors as we further strengthen our balance sheet and continue to effectively execute on our corporate strategy."

The company has been operating for over 10 years. It is based in London and has offices in New York and Palo Alto, California.