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When the markets don’t show you enough love, there’s always the romance of France.
Dating app company Bumble, whose stock has been mired in as much listless research as the protagonists of new wave cinema, chose a fresh new companion. On Monday, it announced its very first acquisition: the French Gen Z-focused app Fruitz.
For the love of money
Bumble’s eponymous platform is the world’s second-largest dating app after rival Match’s Tinder, and stands out by ceding the right to start the conversation to women rather than over-eager guys. Fruitz, a hit with young adults in France, Belgium, the Netherlands and Switzerland, stands out by allowing users to choose one of four animated fruits to symbolize what they are looking for, a serious relationship has a am i with benefits.
The terms of the Fruitz deal weren’t disclosed, but its purpose is crystal clear: Despite the millions of connections Bumble has made, its relationship with investors has been on rocks as of late. And the company’s wallet is lacking next to Match, which data firm Apptopia predicts will see double-digit growth on Tinder through May, while Bumble remains near stability:
- Bumble’s highly anticipated IPO last year was followed by a rapid pop and then a steady decline – the company’s shares are down more than 60% since its February 2021 debut.
- Match has more than a dozen apps – led by Tinder’s $1.7 billion in revenue last year – while Bumble only has two, and its flagship app was set to report. approximately $510 million in 2021.
No warranty: Match’s apps, which include top Japanese dating app Pairs and the rapidly growing long-term relationship app Hinge, are growing faster than Bumble’s. But acquisitions alone haven’t been enough to convince investors that dating apps are worth trading at multiples of their earnings. Despite spending $1.7 billion on its biggest-ever acquisition for South Korea’s Hyperconnect days before Bumble’s IPO, Match’s shares have fallen nearly a third since the IPO. Bumble’s stock market as the company continues to search for that special bull run.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.