Online dating company Bumble (BMBL) which operates the Bumble App and the Badoo apps under MagicLabs. The estimated IPO price is currently locked at $43.
Year over year growth has steadily growing at almost 19% as of September. The $43 target puts Bumble at around a $7 billion valuation. In a sign of huge demand in emerging tech companies, Bumble initially priced it’s IPO at around $30 but then increased to $43. Investors are falling in love with Bumble, as Wall Street gave them it’s warm welcome.
The company has now achieved a great feat and will likely bring competition to others in the space like large dating conglomerate Match (MTCH), who operates Tinder, OkCupid, and other dating services. This IPO also marks a fast turn around for BlackStone who invested roughly $3 billion in 2019.
According to IPO filings, Bumble CEO Wolfe Herd received proceeds of $125 million as a part of the transaction. The company said it plans to repurchase pre-IPO shares and pay down debt with the proceeds and the owners will receive 97% of voting rights following the offering.
Large dating company Match intensifies competition
A couple days ago Match has agreed to purchase Seoul-based Hyperconnect for $1.8 billion. Hyperconnect projects $200 million in revenue in 2020 which is up 50% in 2019, according to the company.
Hyperconnect operates Azar and Hakuna Live which allows users to connect to each other across language barriers. The two are complementary, with Azar focused on one-to-one video chats and Hakuna Live focused on the live broadcast market. In a press release, the company said 75% of revenue comes from Asia. Hyperconnect also claims it made the first mobile WebRTC platform.
As more of our lives move online, people are looking for richer and deeper experiences, Hyperconnect’s live video and audio engagement technology is a powerful tool that enables users to connect with new people and cultures on a global basis. Hyperconnect’s engineering team is relentlessly imaginative and creative. With more than 75% of usage and revenue coming from markets spread across Asia, their product suite and regional footprint squarely complements our own. We will leverage our deep bench of expertise to help accelerate Hyperconnect’s already-impressive growth, look to deploy Hyperconnect’s technologies across our existing portfolio, and continue to invest in their growth.