Industry

The share value for dating app conglomerate Match Group was downgraded from buy to hold in mid-September by a Wall Street analyst who projects the company will fall short on revenue goals until the end of the year.

According to Seeking Alpha, Loop Capital Analyst Laura Champine said Tinder remains a “wildcard” on the heels of Renate Nyborg’s exit from the company, the app’s market share losses to Bumble, and “cannibalization” of Tinder by the company’s other star app Hinge. She also lowered her price target from $70 to $60 a share, adding that “we see potential for further misses” going into the next quarter. 

Champine added that CEO Bernard Kim will be able to “bring in exciting talent” from outside the company, which she takes as a promising sign. Still, she said of the company’s star app: "Tinder has not been executing in line with expectations…Match blamed Tinder for its lower outlook overall and said product launches had been poorly executed of late. The brand needs to do a better job attracting new customers," according to Seeking Alpha.

Grindr CEO George Arison

Dating app Grindr, which serves the LGBTQ+ community, named board member George Arison as its new CEO. He is scheduled to launch the company’s IPO this fall with a $2.1 billion valuation.

Arison is scheduled to take the reins on October 19th. He has long worked in the tech industry and been a board member of the company since May, according to NBC News. Prior to his appointment as CEO, he founded the car reseller app Shift Technologies, where he also served as CEO, and before that he headed a taxi-hailing app.

In addition to hiring a new CEO, Grindr also appointed a new CFO, the former CFO of Disney Streaming Service Vanna Krantz, who launched and grew the highly successful Disney+ product. Grindr’s outgoing CEO Jeff Bonforte and CFO Gary Hsueh will move into advisory roles going forward, according to NBC News.

Match Group, which owns Tinder, Hinge and other popular dating apps, has brought a lawsuit against Apple in India, accusing the tech giant of “monopolistic conduct.”

According to an exclusive report from Reuters, the lawsuit follows other filings the company has made against Apple’s App Store practices, since the company takes commission on every in-app sale and doesn’t allow third party payment systems. Match Group filed a complaint in the Netherlands with the country’s regulatory agency which fined Apple almost 50 million euro, until they came to an agreement to revise App Store practices.

Another lawsuit was filed against Apple in India for its App Store practices, arguing that the company “restricts innovation and development” by “enforcing the use of its proprietary in-app purchase system and ‘excessive’ 30 percent commission,” according to Reuter’s review of the filing. That prompted an investigation from the CCI (Competition Commission of India) back in December of 2021.

Dating app conglomerate 9Count announced that it has raised another $6 million in VC funding on top of its earlier Series A funding of $21.5 million, bringing total funds raised so far to $27.5 million.

According to Tech Crunch, investors have taken notice of the company’s dating app Summer, a rebranding of former dating app Spark, which has gained traction in a saturated market namely for its appeal to younger daters.

Summer hit number one in the App Store in two markets immediately after its launch and now has more than 500,000 downloads, over a million registered users, and more than 300,000 monthly active users (just a few months later). 9Count CEO Alex Hofman told Tech Crunch that it’s “the fastest-growing dating app to hit the market since Bumble arrived in 2014.”

Founder of Blued - Baoli Ma

Baoli Ma, the founder of BlueCity Holdings which operates Blued, China’s most popular gay dating app, has stepped down from his position as chairman and CEO after the company was privatized and delisted from NASDAQ. The company has not yet named a successor.

According to the South China Morning Post, Ma hinted that it was difficult to run a gay dating platform in the country’s current environment, where the government is cracking down on LGBTQ content online and removing gay dating apps including Grindr from its app stores. Last year, Chinese conglomerate Tencent erased over a dozen LGBTQ university groups from WeChat. Same-sex marriage is currently illegal in China as well.

The country has enforced new rules regarding privacy, data management and algorithmic recommendations for the past few years, which have especially affected gay dating platforms like Blued. But the app has run into controversies on its own, too. In 2019, Blued suspended new user registrations for one week after a report came out that some underage users contracted HIV on dates set up via the app.

The global dating market continues to grow at a faster rate than ever before, with projections of total market value to more than double in the next five years.

A new study by Research and Markets detailing the growth of the online dating market globally had an optimistic outlook despite recent disappointing quarters from top dating platforms Bumble and Match Group. The value of the online dating market in 2021 was valued at $12.37 billion and is expected to grow to $28.36 billion by 2027. The online dating market is expected to grow at a CAGR (compound annual growth rate) of 14.84 percent over the period from 2022 to 2027.

Part of the reason for this growth is the popularity of dating apps, especially in countries with younger, growing populations like India and China. In addition, the proportion of single people has been rising worldwide, according to the study.