Is a Bumble IPO coming to the market? Rumors say it is. According to sources, the company is talking to banks about going public. And it’s hoping to raise its value beforehand.
But is Bumble stock a good investment opportunity? Here’s what we know…
Bumble IPO: The Business
Tinder co-founder Whitney Wolfe Herd founded Bumble in 2014. Bumble is a location-based dating app. Users are able to swipe on potential matches and match if both people swipe right. However, the woman must message first. The idea is to challenge social norms of heterosexual relationships and empower women. For same sex relationships, either party can message first.
In additional to Bumble Date, the platform also offers Bumble BFF and Bumble Bizz. But Bumble Date is the most popular with over 100 million users. And it’s the second most-popular app behind Tinder. Bumble is a free app. But there are certain features that can be unlocked for a fee. For example, if a woman doesn’t message a guy within 24 hours on Bumble Date, they’re unmatched. But men have the option to purchase an additional 24 hours.
Although no official Bumble IPO plans have been revealed, investors are eagerly waiting for news. Bumble stock would be the latest addition to tech IPOs during 2020.
Why is Bumble Going Public Now?
Without public information, it’s hard to say why the company is looking to IPO. But it’s rumored Bumble is talking with banks. It would be good timing for the startup. Multiple tech IPOs hit the market and more are filed. This includes companies like Snowflake, Airbnb, Palantir and Unity Technologies. And you can also check out other top recent IPOs.
The coronavirus brought an increase of users to the platform. When people had to stay home, they sought out social connections online. The global online dating service market is supposed to be worth $9.2 billion by 2025.
Due to the coronavirus market crash, the IPO market came to a near halt in the first quarter of 2020. But as the market continued to show signs of recovery, companies took advantage. There are 111 IPOs year-to-date. Another 87 filed in 2020, 60 of which were in the last month.
After the Apple and Tesla stock split, some investors think the tech sector is undervalued. Others think it’s corrected. But it looks like the Bumble IPO won’t be hitting the market until 2021. That means investors have time to see how the market reacts to upcoming tech IPOs before investing in Bumble stock.
But let’s take a closer look at Bumble…
The Bumble App: What Will Bumble Stock Fund?
There are three platforms on Bumble—Date, BFF and Bizz.
Bumble Date. The app originally was meant for dating to challenge popular dating app Tinder. But Wolfe Herd wanted to help empower women and level the playing field. So, Bumble set itself apart by adding the unique feature of women messaging first. Men don’t have the option in heterosexual relationships.
The company states it helps decrease message spamming, unsolicited pictures and uncomfortable conversations because the woman gets to set the tone. And according to the site, the app has 94,000 new users every day and 23 million new matches are made each week.
Bumble BFF. Bumble for Friends (BFF) was introduced in 2016. It’s a way to meet people and create platonic relationships. BFF is a global platform, which makes it perfect for people moving to a new place or simply looking for more friends. Similar to Bumble Date, users swipe on potential matches. However, BFF provides users of the same gender, which allows either party to message first.
Bumble Bizz. Bumble Bizz launched in 2017. it’s the app’s version of LinkedIn. The goal is to help individuals create a professional network. Sometimes people have a hard time networking, particularly recent graduates. However, Bumble decided to keep its “female-first” model from Bumble Date. But the site states it shouldn’t be used to discriminate against men.
It’s possible Bumble stock will help fund a new feature. Or funds may help improve current user experience. Whatever the reason, the company is preparing for a Bumble IPO. But the details are few.
Bumble IPO Details
There is no Bumble IPO date. The company hasn’t filed to go public with the SEC. Reports claim the IPO might come early next year and could seek a valuation of $6 to $8 billion. Bumble is still likely talking to banks and hasn’t confirmed anything.
Private equity firm Blackstone Group purchased a majority stake in Bumble last year. The deal valued Bumble at $3 billion.
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The Bumble IPO isn’t set and could potentially fall through. But if the market continues to improve and tech IPOs are successful, investors should keep an eye on Bumble stock.