In the end of November, when the online dating service Bumble (BMBL) officially filed for an IPO with the SEC, we asked ourselves if investors would swipe right. The answer has become apparent, as Bumble opened 77% over their IPO price of $43 which had already been raised due to high demand.
This price surge increased the market cap of the female-centric dating app to $14.1 billion. Bumble founder and CEO, Whitney Wolfe Herd, who has previously been employed at Tinder, plans to use the proceeds for debt repayments and repurchasing of shares. At 31 years old, she also became the youngest female founder to conduct an IPO in the United States.
While recognizing its competition, including Match Group (MTCH), which owns dating sites such as Tinder and OkCupid, Bumble is sure that there is enough space for multiple service providers in the market. Bumble’s unique selling proposition (USP) derives from its focus on women, who are exclusively allowed to make the first move.
Bumble has been added to the NASDAQ under ticker symbol BMBL.