10.8 million monthly users
Dating app Grindr wants to go public
Things are not looking good for Grindr in China. And there are also problems in Sweden. Nevertheless, the American company wants to take the plunge on the stock market. The dating app for the LGBTQ+ community is said to be worth $2.1 billion.
Queer dating site Grindr plans to go public. The American company announced that it has partnered with a special acquisition company for this purpose. The company is valued at $2.1 billion and is expected to raise $384 million through the IPO. With this money, Grindr wants to “further expand the opportunities it provides to the LGBTQ+ community,” CEO Jeff Bonforte said.
The startup, founded in 2009, claims to be profitable. It bills itself as “the world’s largest social networking app for gay, bi, trans and queer people.” Grindr said it averaged 10.8 million monthly users last year, most of whom are 35 or younger.
Grindr’s merger with a so-called Special Purpose Acquisition Company (SPAC) is therefore still subject to official approval and is expected to be completed in the second half of this year. SPACs are formed to collect money from investors and use it to take a previously unknown company public.
Grindr was previously owned by Chinese group Beijing Kunlun Tech. The latter sold the app to investors in 2020 under pressure from US authorities who feared the potential misuse of the data posed a national security risk. The Grindr app disappeared from several app stores in China earlier this year as part of an alleged data protection campaign by China’s Internet Authority.
Last December, Norwegian authorities fined the company more than six million euros for data protection violations. Grindr appealed against this.