Grindr, the popular dating and social networking app for gay men, has found itself a match.
The company on Monday said it had sold a majority stake to the Beijing Kunlun Tech Company, a Chinese gaming company, valuing the six-year-old start-up at $155 million. Beijing Kunlun will acquire 60 percent of Grindr, with the remainder to be owned by Grindr employees and Joel Simkhai, the company’s founder. Grindr has previously not raised capital from outside investors.
“We have users in every country in the world, but in order to get to the next phase of our business and grow faster, we needed a partner,” Carter McJunkin, chief operating officer of Grindr, said in an interview. Mr. McJunkin said the pairing made sense for Grindr because of Beijing Kunlun’s digital expertise, and its agreement to let Grindr’s founders continue its operating structure and retain its current team.
For Beijing Kunlun, Grindr offers a chance to expand beyond its core gaming assets and into other lifestyle categories, as well as markets outside China.
“We have been very impressed by Grindr’s progress to date and are extremely excited about the future of the company,” Yahui Zhou, chairman of Kunlun, said in a statement. “We will continue to seek out and invest in high-quality technology companies led by top-tier management across the globe.”
Founded in 2009 by Mr. Simkhai with a few thousand dollars of his own money, Grindr has grown to become a mainstay of the gay hookup and dating culture in 196 countries around the world. The mobile app lets users see photos of one another based on their location, and users can share photos and text messages with one another. Read more via New York Times