WEST HOLLYWOOD (KNX) — Mobile gay dating app Grindr plans to take the business public as a developmental stage company with a $2.1 billion valuation.
Blank check firms have no specific established business plan or purpose or plan to engage in a merger or acquisition.
Owners plan to merge with Tiga Acquisition Corporation without any offer of private investment, Bloomberg reported, noting that Grindr’s valuation includes its debt. The acquisition will give the software development company $384 million to pay its bills.
Grindr’s chief financial officer told Bloomberg it had received at least six other offers before deciding on Tiga.
Based in West Hollywood, California, Grindr had been approached by a half-dozen SPACs before agreeing with Tiga, Chief Financial Officer Gary Hsueh said in an interview.
“From our perspective, we’re ready to be a public company,” said CFO Gary Hsueh. “[SPAC] made more sense because it had certainty and that’s even more important today than it was a year ago when the market was different.”
At 13-years-old, Grindr has weathered several changes in ownership. A Chinese firm, Beijing Kunlun Tech Co. Ltd., bought the app in 2016 but sold it back to stateside owners in 2020 after a U.S. government panel raised national security concerns. The Chinese company had been preparing for an initial public offering (IPO) of Grindr before federal regulators forced its auction.
Dating apps like Tinder and Bumble are LGBTQIA-friendly, but Grindr, which caters to gay men, is most popular among the demographic, with 11 million active monthly users. That’s roughly one-tenth of the user population on Tinder or Hinge.
“The number of people who identify as part of the queer community has increased so dramatically,” said Grindr CEO Jeff Bonforte, who plans to retire later this year.
Grindr offers a free membership with the option for premium upgrades at a monthly cost. More than 720,000 of its users pay for additional features, accounting for most of its revenue. And roughly 80% of its members are younger than 35.
The deal should be finalized by the end of the year.
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