Industry

India is now among the fastest-growing dating app markets worldwide, thanks to a growing young population of singles and their changing attitudes towards dating.

In terms of year-over-year growth, India emerged as the fifth largest market in dating app spending in 2022, according to a new study by data.ai Intelligence. Researchers found that Indian users spent $31 million more in 2022 than they did in 2021 despite economic factors like inflation that affect consumer spending.

Match Group, Bumble, and other major dating app companies have made a big investment in India, hoping to capitalize on this attractive market which now brings in millions of dollars in revenue each year to dating app companies.

A group of class action lawsuits have been filed in the U. S. District Court on behalf of investors who purchased shares of Match Group stock between November 3, 2021 and January 31, 2023. The lawsuits allege that the company misled investors as to financial expectations and new product executions that Match Group was claiming to initiate.

According to law firm Bernstein Liebhard LLP, a lawsuit was filed in the U.S. District Court for the district of Delaware and alleges “violations of the Securities Exchange Act of 1934.”

According to the press release from Kaskela Law, LLC, throughout the dates named in the lawsuit, Match Group and its executive officers “falsely represented to investors” that Tinder was moving forward with critical product initiatives to drive growth for the company in 2022 and going forward. In addition to this, other lawsuits have been filed on behalf of investors with Kessler Topaz Meltzer & Check, and Bernstein Liebhard LLP, among others.

Dating app Grindr closes out 2022 on a high note, reporting a 34 percent increase in year-over-year earnings to $195 million, showing a positive outlook for the coming year to investors since the app went public.

According to Fast Company, monthly average users rose to about 12 million, up from 11 million at the same time last year. Paying users also grew from 703,000 to 873,000 over the last year.

This was the company’s first earnings report as a public company, and with the impressive numbers, shares more than doubled throughout the trading day, according to Fast Company. The article was quick to point out that the dating app industry in general is still volatile despite earnings, as shown by Bumble’s fluctuating share price and secondary stock offering, as well as the recent Match Group dip. Since Grindr’s report came out, the company’s stock has gone down.

Dating app company Bumble Inc announced a secondary stock offering by majority stockholders Whitney Wolfe Herd, Bumble’s founder and CEO, and Blackstone. The price set for the secondary offering is at $22.80.

The price of Bumble stock fell 7 percent after this announcement, and after news that the previously announced 12.5 million secondary shares the company was originally going to sell went up to 13.75 million shares. Blackstone offloaded about $313 million in their stake in Bumble at the $22.80 share price, below the previous day’s closing price of $24.54. Another $47 million in stock “has been earmarked for over-allocation purposes,” according to Investing.com.

Blackstone offloaded the majority of shares, with Wolfe Herd cashing out just under $2 million in her shares of the company.

Match Group, parent company of popular dating app Tinder, is in talks to purchase a strategic stake in Shaadi, an India-based online matchmaking service.

The Economic Times first reported that the two companies were in talks, and that Match Group was looking to buy out Shaadi’s institutional stakeholders, but few details have emerged.

According to Ink 42, this latest development comes after Match Group has refocused its efforts and brought on a new executive team to run Tinder, which last year saw its first quarter of revenue decline since the company went public. Match Group has set its sights on the fast-growing Asian market, especially India and its large under-30 market.

Bumble surprised investors and analysts with its latest earnings report, which showed better-than-expected revenue in the last quarter of 2022. Shares of the company’s stock rose about 2 percent as a result.

According to Seeking Alpha, Wall Street analysts had expected fourth quarter revenue to reach only $235.9 million, but the company reported revenue of $241.6 million, up from $207 million in the same quarter the previous year.

Bumble also reported 3.4 million paying users during the fourth quarter of 2022, compared to 3 million in the same quarter of 2021. Total average revenue per paying user was about $23.01 for the fourth quarter of 2022, compared to 22.68 the year before.