How Bumble Got Its Start To Become A Multi-Billion-Dollar Dating Giant
How Bumble got its start to become a multi-billion-dollar dating giant
From an online dating app to becoming a public company - Bumble is reportedly headed toward a $6 billion to $8 billion initial public offering.
You must have heard all about the recent discussions about Bumble and Whitney Wolfe Herd.
Is Bumble better than Tinder?
Is Bumble a good dating site?
How much does Bumble cost?
The questions are pouring in at top speed. The answers, however, need a little bit of curating. Welcome to our new blog on Bumble Bubble. Over the course of this article, we will cover everything that you need to know about the newest dating app that has taken the market by a storm.
Here's how Bumble got its start to become a multi-billion-dollar dating giant.
Let us start from the very beginning.
How did Bumble start?
Bumble started its journey in the year 2014 after Whitney Wolfe Herd left Tinder, where she was a cofounder.
Intending to provide a comfortable online dating space for women, Whitney Wolfe Herd, the founder, and CEO of Bumble, launched the app in 2014. It further expanded to networking and friendship, and in the year 2020, it was valued at about $3 billion. Bumble and Badoo are the two apps under Bumble Inc. and are promoted by Serena Williams and Priyanka Chopra.
At present, it has over 42 million monthly users.
In the year 2019, Bumble sold its majority stake to Blackstone Group. It was only in 2020 that Bumble went for an IPO on NASDAQ. In the recent Bumble IPO, the company raised about $2.15 billion from the stock market. Bumble sold 50 million shares at $43 per share. Currently, the company is valued at $8.2 billion, up from the $3 billion valuation in 2019.
This is the second time Bumble has raised its IPO pricing after it targeted 34.5 million shares at $30/share (up from $28/share) and then raised it to 45 million shares for $37-39/per share. This move made it stand out along with the other big-bang tech IPOs like Airbnb and DoorDash.
Sounds impressive, doesn’t it?
Take a look at some of the milestones that Bumble has achieved.
Milestones of Bumble
1. Founded in December 2014
2. Reached over 15 million conversations and 80 million matches by December 2015.
3. Made over 22 Million registrations by November 2017
4. In the year 2014, Wolf Herd featured on 30 Most Important Women Under 30 In Tech.
5. In 2016, she made her presence on Elle
6. She made it to Forbes 30 under 30 in 2017 and 2018
7. She was featured on TechCrunch on 42 women succeeding in tech, in 2017
8. In 2019, Bumble, with 5 million monthly users, stood at second as the most popular dating apps in the USA, while Tinder stood at first with 7.9 Million monthly users.
9. In November 2019, Bumble's parent company MagicLab was taken over by the private equity firm The Blackstone Group.
10. Wolfe Herd became CEO of the newly acquired MagicLab which was valued at $3 billion with an estimated 75 million users and received an ownership stake of approximately 19% of the company.
11. In 2020, MagicLab became the parent company of both Bumble and Badoo.
12. Bumble reached the new feat of over 100 million subscribers worldwide, in 2020
13. Its Alex ranking is 19,208
If we talk about the company’s financials, the story looks just as impressive.
From $10Mn Revenue in 2016 to $240Mn in FY2019, the numbers speak everything about the performance of Bumble in the world of dating.
While most of the businesses got affected due to COVID-19, some companies used the lockdown as an opportunity to grow and expand their operations.
When it comes to Bumble, as you can see in the graph above, COVID-19 has been especially kind to the company. The valuation of the company takes a sudden jump from $3 billion to $8 billion in 2020. Prior to that, the increase was a lot more uniform and gradual.
Bumble’s User Growth
From 1 million users in 2015 to 100 million users in 2020, Bumble has received a huge response. Its unique feature is that women get to make the first move. Labelled as a women-centric dating app, Bumble claims to give women the chance to make the first move.
“When women come together, we make a lot of amazing stuff happen,” said Whitney Wolfe Herd.
What made Whitney Wolfe Herd a successful female entrepreneur?
According to her interview with CNBC, Wolfe Herd believes how a person handles hear can determine whether they are successful or not. No one ever becomes successful without facing failures. Everyone and everything takes time to roar.
“Start somewhere and go for it. Don’t be scared of the ‘what ifs,’ because the truth is, the only failure is not trying,” says Wolfe Herd. “That’s the only way you can fail. Trying and having it not work out isn’t a failure.”
Adding to these statements on how she became successful, she said, “Going out on my own in 2014 was scary, I am scared of a lot of things, but I try to challenge myself every day to do something that scares me, because 90% of the time, it isn’t as bad as you thought it was.”
Bumble vs. Tinder
Bumble is changing the rules of the game.
Just like the other rival apps, Bumble allows its users to swipe left or right on potential matches. It gives women the choice to initiate contact for heterosexual matches, this move made a big difference and impacted women who were tired of frustrated Tinder messages. By only allowing women to make the first move, the company has created a unique niche for itself in the dating space. According to its users, Bumble is not just a dating app. It created a social movement with a secure environment for women to go out and meet people.
With its features on safety and personalization, Bumble markets itself as a more safe, secure, and relationship-focused option than other apps. Apart from its features, Wolfe Herd used her marketing techniques from her days as Vice President of marketing at Tinder. She has used many of the same strategies as targeting college campuses.
Bumble made its foundation with the objective of women making the first move and today 46.2% of Bumble’s users are female. As Whitney Wolfe Herd said, everyone should start somewhere and continue doing it to become successful.
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