Bumble CEO Receives Over 4 Million Pounds from Magic Lab Dividend

  • Friday, October 25 2019 @ 11:30 am
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Bumble founder Whitney Wolfe Herd has secured a 4 million pound dividend payout from parent company Magic Lab, who saw record earnings thanks to its star dating app.

According to The Telegraph, the Bumble windfall is the result of a dividend payout of 20 million pounds from its parent company, and Herd owns about 20% of Bumble. Magic Lab saw earnings skyrocket at the end of 2018 to about 270 million pounds, up 51 percent from the year before. This quarter, the company reported a loss of about 4.8 million pounds.

Bumble’s revenue made up about 48 percent of Magic Lab’s overall business.

In addition to Bumble, Magic Lab also owns dating apps Badoo, Chappy (for LGBTQ+ daters), and Lumen (for over 50 singles). Bumble is its most profitable app.

Magic Lab is headquartered in the U.K. and was founded by Russian online dating magnate Andrey Andreev, who owns 79 percent of Bumble. He has bankrolled the company from the beginning, including funding the additions of networking service Bumble Bizz and friend-finding Bumble BFF as well as the dating app. He wanted to position Bumble to be a direct rival to dating app Tinder.

Herd has led Bumble to financial success and has managed to carve out a unique selling point in the crowded dating app field. Its female-first philosophy in all areas of life – love, work and friendships – has attracted brand ambassadors and partners like Serena Williams, Priyanka Chopra, and Jameela Jamil.

Magic Lab/Badoo is rumored to be preparing for a US IPO, with its Bumble holding valued on its own at more than one billion, according to The Telegraph.

Badoo and Andreev have had a rough time this year, however. Earlier this summer, allegations were made by 13 former Badoo employees citing a sexist office culture, claiming that engineers named updates after porn stars and circulated a video of one employee receiving oral sex from a prostitute. In addition, these employees alleged that Andreev made derogatory comments around race and physical appearance. Since the allegations were made public, Andreev has hired two independent firms to investigate the matter and provide a strategy to improve Badoo’s toxic work environment.

Herd expressed disappointment over the news, and issued a statement that said she was “mortified by the allegations” and “saddened and sickened to hear that anyone, of any gender, would ever be made to feel marginalized or mistreated in any capacity at their workplace.”

Magic Labs in based in London and most of the technology for its apps is developed there, though Bumble is headquartered in Austin Texas and generates much of its revenue in North America.