Grindr, the world’s largest LGBTQ+ dating app, is set to go public through a merger with Tiga Acquisition Corp, a special-purpose acquisition business.
Grindr, established in California, announced that it is profitable, with a 31.5 percent rise in paying customers year over year as of December 2021. It said that almost 80% of user profiles are 35 years old or younger, and that there is still untapped worldwide potential for its services.
Grindr announced on Monday that the combined firm is valued at $2.1 billion. Grindr expects to raise $384 million from the transaction, which it aims to use to pay down debt and expand.
“Grindr has established itself as the primary social network for LGBTQ+ people, enabling meaningful expansion of its monetization within a continuously growing market,” said Raymond Zage, Chairman and CEO of Tiga.
Chinese gaming company Beijing Kunlun Tech acquired 60% of the dating app in 2016, and the rest of its shares in 2018. In 2019, the Committee on Foreign Investment in the United States (CFIUS) labeled Beijing Kunlun’s ownership of Grindr a national security risk. In 2020, the Chinese company sold Grinder for $620 million to San Francisco-based San Vicente Acquisition Partners.
The dating app said existing shareholders would own about 80% of the company after the merger, which is expected to close in the second half of 2022.
Tiga shares are up about 1.5% in after-hours trade.
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