'Sexual Minority Dating App' Grindr to Go Public via SPAC

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Dating application (app) Grindr for sexual minorities has agreed to go public, Bloomberg News reported on the 9th (local time). It is scheduled to be listed through the special purpose acquisition company (SPAC) Tiga Acquisition Corporation, with a corporate valuation of $2.1 billion (approximately 2.7 trillion KRW).

According to the report, Grindr announced this on the same day and stated that it will receive $384 million in support from Tiga, most of which will be used to repay debt. Grindr explained that it will use these funds "to invest in growth, try new initiatives, and continue efforts to promote the best interests of the global queer community."

Gary Huwer, Grindr's Chief Financial Officer (CFO), said that before signing the contract with Tiga, Grindr was contacted by six SPACs and believed that going public through a SPAC was more suitable in terms of clarity than a traditional initial public offering (IPO).

Grindr, founded in 2009 as a dating app for sexual minorities, had 10.8 million users as of last year. Revenue mainly comes from user subscriptions, with advertising revenue as well. Grindr recorded sales of $147 million last year, a 30% increase compared to the previous year. It has shown steady growth since $55 million in 2016.

Foreign media reported that Grindr is a company establishing its position by targeting the sexual minority group in the highly competitive dating app market. It competes with Match Group, which owns popular dating apps including Tinder and Hinge, and Bumble, which experienced rapid growth last year. Bloomberg reported that 80% of Grindr's users are under 35 years old and mainly male homosexuals.

Jeff Bonforte, Grindr's Chief Executive Officer (CEO), said, "The number of people who recognize themselves as members of the queer community is rapidly increasing," attributing this to most people feeling comfortable accepting their own identity. CEO Bonforte plans to resign in the second half of this year. Grindr did not separately mention the successor CEO.

This content was produced with the assistance of AI translation services.