DATING APPS ARE BLOCKED IN RUSSIA BUMBLE, BADOO DON’T WORK
Tinder rival Bumble is majority-owned by European dating behemoth Badoo – TechCrunch
“Badoo and Bumble are separate companies. Andrey Andreev, via Badoo, invested in Bumble as a startup,” Bumble told me in a statement after I pressed for further details regarding the relationship between the two entities. “As is well publicized and documented, Andrey Andreev and Whitney Wolfe decided to partner on a new company in 2014. Badoo invested in this new project — the new project became Bumble.”
None of which should take away from Wolfe and her team at Bumble’s success to date. The app boasts 3.5 million users since launching just shy of 15 months ago. It’s also been steadfast in its female-led approach, an underserved portion of the market. In Bumble, women are required to make the first move, and I’m told have done so over 36 million times via the app — a number that suggests Wolfe’s vision for a new type of dating app is actually working.
It’s also my understanding that the thinking behind Badoo’s large stake in Bumble, and in turn, Wolfe’s smaller stake, is that it will enable the startup to grow indefinitely without the need for numerous further funding rounds, which would see Wolfe’s stake diluted significantly anyway. As the statement above says, Badoo’s investment should allow Bumble “to scale, without needing to seek outside capital”.
A recent company filing for Bumble Holding Limited — the U.K.-registered entity behind Bumble — shows the exact equity breakdown of the company. Most strikingly, Badoo has a whopping 79 per cent stake in Bumble, making it by far the majority owner. And, as you’d then expect, in second place is Bumble founder Wolfe with an ownership stake of 20 per cent. Fellow ex-Tinder employees, Mick and Gulczynski, make up the remaining 1 per cent.
“It also allows for Bumble to scale, without needing to seek outside capital,” adds Bumble. “That is an important part of what makes this a highly unique and opportune deal. For a company like Bumble with such incredible growth, this strategic move has been invaluable when it has come to easily and seamlessly solving common startup issues such as scale and infrastructure.”