Tinder now worth $3 billion
Tinder, Match Group’s wildly popular hook-up app, has over 50 million members. And now, following a conversion of options in Tinder (previously held by the founders and early employees) into options of Match Group, the app has a valuation to match that impressive popularity. According to sources close to the deal, it values Tinder at $3 billion – more than 60% of Match Group’s total market cap! If there was any stronger way for the company to send a message about how important Tinder is to its future growth and mobile strategy, it is difficult to imagine it.
Match Group’s share price jumped in August
Tinder is a masterpiece of design. Simple, gamified, and straight to the point, you simply have to fill in the most basic of profiles, upload a picture, and let the algorithms pick you a list of partners. Once they’ve done that, you indicate interest by swiping either left or right – a “yes or no” as to whether you want to “hook up” with that person.
A clear case of the right product for its time, Tinder has capitalized on both the trend towards mobile internet use, and the hook up culture that many young people – increasingly isolated from one another through busy urban schedules – have been so quick to embrace.
Recently, the app has continued to court success even as it evolves. Match Group hit an all time high after announcing a “Tinder Gold” membership – a $5 subscription model – and at the end of last month, Tinder took the top spot on Apple’s top grossing app chart, outperforming big names like Candy Crush and Netflix.
Dominion holds Match Group in its Global Trends Ecommerce Fund.
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