Finances

India-based dating app Schmooze just raised $4 million from Elevation Capital and other angel investors.

The meme-based dating app founded by Vidya Madhavan and Abhinav Bengaluru helps people connect based on their senses of humor and allows them to express their personalities creatively through memes. The round of funding also included investments from the founders of Ultrahuman, The Souled Store, Mosaic Wellness and Paytm, according to Economic Times.

The funding comes at a time when dating app revenue has been declining and dating app companies are struggling to better monetize their platforms. Many are turning to AI for enhanced features, like photo selection, helping users craft bios, and added safety features, hoping to attract users willing to pay for such perks.

Schmooze is also touting its AI-driven features, and said that the new funds will be used to enhance its AI engine as well as for growing the company, according to Economic Times.

Dating app Bumble’s share value dropped 30 percent after the company slashed its annual growth revenue forecast in its second quarter earnings report.

According to Reuters, Bumble also fell below estimates for its second quarter revenue. The dating app company reported revenue of 268.6 million, below analyst expectations of $273 million.

This report worried investors who compared Bumble’s second quarter to rival Match Group’s, which reported relatively better revenue numbers driven by robust growth at Hinge and more stability at Tinder.

Dating app giant Match Group announced its plan to cut six percent of its workforce after numbers for the company’s second quarter fell short of expectations, according to BBC.

Match Group owns the popular dating app Tinder (which has seen a significant decline in downloads), along with Hinge, Plenty of Fish and OkCupid, among others. The company’s second quarter earnings report showed an 8 percent decline among the number of paying Tinder users according to multiple reports. Hinge still remains a bright spot with significant growth.

According to BBC, Match Group said job cuts would largely come from shutting down its live-streaming app Hakuna and removing live-streaming features from some of its dating apps. (Despite the popularity of livestreaming dating apps in China, it hasn’t really taken off in the rest of the world.)

Starboard Value has taken a stake in Match Group, the latest firm to join the company’s activist investors and criticize executives for its financial performance.

According to The Dallas Morning News, Starboard has built a 6.6 percent interest in Match Group, the parent company of dating app Tinder. The popular dating app has seen a drop in paying customers for six straight quarters, with little sign that things will turn around soon.

Starboard joins Elliott Investment Management LP and Anson Funds Management LP, two other activist investors who have demanded changes in Match Group’s operations. Starboard is planning to push for selling Match Group if it fails to turn things around, according to Dallas Morning News.

Hinge and Grindr are two standout dating apps as they continue to grow in a tough market; powerhouses Tinder and Bumble are seeing more users leave their platforms.

In general, dating apps have had a rough couple of years, with the coveted Gen Z market looking to other options besides dating apps to meet singles, including in-person events, running clubs, and social media platforms like LinkedIn.

“Online dating trends have continued to decelerate industry-wide, showing minimal relief from the recent struggles,” wrote Morgan Stanley analysts Nathan Feather and Brian Nowak in their research, according to Quartz.

A majority of dating platforms have signed on to a new dating safety code in Australia, in an effort to crack down on dating app users who violate policies.

According to News.com, dating app users who “harass, threaten, or share unwanted explicit photos” could have their accounts terminated across multiple platforms at the same time, intended to create a safer space overall for online dating. Seventy-five percent of companies operating in Australia have signed on to the new industry standard, including Match Group (which operates Tinder, Hinge and OkCupid among others), Bumble and Grindr.

A recurring problem with dating apps is user safety, specifically surrounding the growing number of users who receive unsolicited images. If a perpetrator is banned from one platform, they can easily move on to other platforms, so the new safety standard is intended to prevent this from happening.