Bumble Dating App Raises $2.2B In Upsized IPO, Shares To Start Trading Today

Bumble is expected to begin trading today February 11, 2021, Bumble Inc. (BMBL) has already increased the expected IPO price range to a midpoint of $38/share, which would value the firm an amount over $7 billion. With a higher valuation, likely due to rising demand for shares, and the question is, will investors find a perfect match with Bumble?

Bumble, the top rival to Match Group’s Tinder dating site initial public offering priced at $43 a share.

Bumble is lead by CEO Whitney Wolfe Herd  and she is one of the few women to have lead her company to a public listing. She is the youngest woman, of age 31, to take a large company public as chief executive officer.

A Bumble App is mainly female dominated which enables “women to make the first move.” This App seeks to change the “archaic gender dynamics and old-fashioned traditions” of dating.

Herd had previously been a co-founder of Tinder before she stared Bumble in 2014.

This App that empowers women in the dating industry has found success and built a fast-growing business, though with not very consistent profits making. Bumble’s revenue growth was $360 million to $489 million, thus from 2018 to 2019 respectively. Core Earnings improved from -$14 million to $69 million, thus, from 2018 to 2019. 

The IPO was upsized twice from the initial price range of $28 and $30 per share to $37 and $39, TechCrunch reported. The offering is estimated to close on February 16, 2021.

Bumble app’s market share increased from 10% in 2017 to 19% in 2020, according to Sensor Tower, an app intelligence and insights provider. Bumble app gains have come at the expense of Tinder, Match, and Other apps.

Match Group (MTCH) is clearly the dating industry heavyweight (owning six of the top 10 dating apps by revenue in 2020), the Bumble app (owing two) has significantly improved its market share of the U.S. dating app market in recent years.

Bumble is expected to begin trading today February 11, 2021, it has already increased the expected IPO price range to a midpoint of $38/share, which would value the firm at over $7 billion. With a higher valuation, likely due to rising demand for shares, will investors find a perfect match with Bumble?