Bumble shares continue climb after $2.2bn IPO

By Robert Scammell

Shares in dating app Bumble have continued to rise on its second day of trading on the NASDAQ stock exchange following an IPO that initially raised $2.2bn for the US-firm.

The company debuted at $43 per share on Thursday, giving it an $8.3bn valuation. Shares quickly jumped to more than $76 apiece, causing its valuation to jump to more than $13bn.

On Friday shares continued to climb, opening at $75.71 and reaching a high of $84.80.

At the time of publication, shares were trading at $80 apiece.

Founded in 2014, the app’s unique selling point is that women must make the first move, or ‘swipe’ first. The feature has driven its branding and positioned it as a “women-first” dating app.

More than 40 million people visit the two apps that Bumble operates – Bumble and Badoo. They are available in more than 150 countries.

Private equity firm Blackstone took a majority stake in Bumble in November 2019 when it was valued at $3bn, making the company the biggest winner from the IPO.

Bumble saw revenue decline 15% year-on-year for the first nine months of 2020 as the pandemic took its toll on its business model. It posted a loss of $116m during the period, but in 2019 it turned a profit of $68.6m.

At 31-years-old, Bumble founder and CEO Whitney Wolfe Herd became the youngest-ever female founder to take a company public.

Footage of Wolfe Herd ringing the virtual bell while holding her baby quickly went viral.

Wolfe Herd said via Twitter:

“Today, Bumble becomes a public company. This is only possible thanks to the more than 1.7 billion first moves made by brave women on our app — and the pioneering women who paved the way for us in the business world. To everyone who made today possible: Thank you.”

Wolfe Herd founded Bumble after an acrimonious split from rival Tinder, a company she also co-founded.

Bumble also plans to expand into areas beyond dating, including business networking.


Read more: It’s Facebook official: The social media network’s foray into online dating