Connecting gay men is big business. Grindr announced yesterday that it’s going to go public and float on the stock market.
In a press release describing itself as “the #1 social network for the LGBTQ+ community” (ahem), Grindr said it was merging with Singapore-based investment company Tiga Acquisition Corp. (TAC) ahead of the public offering. The combined company will be called Grindr, Inc.
TAC will help Grindr raise the funds to go public.
“Grindr is well positioned to be a public company and will continue to expand the ways it serves the LGBTQ+ community, from products, services to the philanthropic and advocacy work done through Grindr 4 Equality,” said its CEO, Jeff Bonforte.
Related: The Old Gays reacting to Grindr tags might be the best thing you see all day
James F. Lu, Chair of Grindr’s Board of Directors, added, “This transaction is a milestone event, not only for our iconic company, our people, partners, and investors, but also for the community we serve around the world.”
Grindr was launched in 2009 by tech entrepreneur Joel Simkhai. One of the first geosocial networking sites on the market, it benefited from the explosion in smartphone use and quickly became one of the most popular dating apps for gay and bisexual men.
Over 2016-2017, China-based Beijing Kunlun Tech paid almost $250million to purchase Grindr.
However, the purchase fell foul of US authorities, who were uncomfortable with a Chinese company holding the data of so many US citizens. In 2019, the Committee on Foreign Investment in the United States (CFIUS) ordered Kunlun to sell Grindr back. It was bought by a group of US-based investors, San Vicente Acquisition, for $608m.
Grindr says it turned $147million in revenue in 2021, representing year-on-year growth of 30%. It says it has 11million active monthly users, of which 723,000 pay for its premium services. Users spend on average 61 minutes per day on the app.
After going public, Grindr predicts a “post-transaction enterprise value of $2.1 billion”.
Related: Political candidate places ads on Grindr, wants to come ‘top’ in election
Grindr is not the first dating app to go down this route. Match, which owns Tinder and Hinge has done so, and is worth around $20billion. Bumble has also gone public.
Grindr says it has organized, “a majority LGBTQ+ identifying Board of Directors.”
One of those board members is the CMO of Hootsuite, Maggie Lower. She said, “Grindr is iconic. It plays in the space between dating service and social network, and acts as connective tissue for large segments of the LGBTQ+ community. There is more we can do; connection technology is dynamic and fast moving, and the opportunities for Grindr are enormous.”
Grindr says the deal with Tiga Acquisition Corp. may need to be cleared with CFIUS before going ahead.
CNY1983
grindr who?
Chrisk
That’s just swell news since China has such a great track record on gay rights. I’m glad they can all look the other way for the $ though.
dwick
the company is owned by an American group, not Chinese. It’s in the article.
Brian
Are you mixing up Singapore with Hong Kong? H.K. was recently merged back into China, but Singapore has long been a sovereign country.
Anyway, all three places are dangerously homophobic. User data is not safe. And this is mostly a way for homophobic execs to profit off the people they hate.
Covid Hermit
Um, since when is Grindr a “social network”?
Dymension
Since you can pass on socially transmitted disease using Grindr.
Heywood Jablowme
“the purchase fell foul of US authorities, who were uncomfortable with a Chinese company holding the data of so many US citizens.”
So the US made the Chinese company sell Grindr again. But do you really think the Chinese company did NOT back up the data of so many US citizens? It’s easy to do that and no way to check.
JJinAus
Just the US then?
Robothedestroyer
I welcome being corrected because math is not my strongest, but according to their numbers 723,000 people is only 7% (?) Of the users actually buying premium subs? It looks to me like they need to lower those damn prices and give you a few more perks to raise that % up a little bit.
quantum
That doesn’t account for all the ad revenue they generate.
charmin88
Dont say “Grindr who?” Because clearly 11 million people are using it and I open it up occasionally to see if there is a decent guy living near me I might have something in common with. We don’t all come on there for sex. I went on a few casual dates mostly to movie premiers because I didn’t want to go by myself and wanted to atleast fill I was having a normal dating life. I had a few cuddle sessions, but ofcourse most guys are on there for sex so alot will treat you like crap if they message you and you not “FUN” Unfortunately the other apps just are not that popular or used to the extent of Grindr. I don’t drink so hanging at a bar is not for me. They really dont making many gay spaces for LGBT people to interact non sexually with one another. Theres Pride, but literally one month out of 12.
Kangol2
Well, there are LGBTQ social organizations, LGBTQ bookstores, LGBTQ and LGBTQ-friendly churches, LGBTQ social service organizations, LGBTQ political organizations, LGBTQ academic organizations, etc. so there are other options behind bars, clubs and bathhouses.
Mike Hunt
It is a toxic app and has caused much anguish for many men.
bachy
I don’t see OKCupid mentioned and I highly recommend it to gays, straights and everyone in between. OKC looks at a lot of qualities in their efforts to match people up – far beyond whether you’re a top, bottom and your d-size.