Bumble Sets IPO Price Above Expectations

The dating app raises $2.2 billion in its IPO

By
Elana Dure
Elana Dure
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Elana Duré is a markets writer for Investopedia. She covered shareholder activism as a reporter at Reorg and Activist Insight and her work has been published in The Washington Post, Chicago Tribune, and The Jerusalem Post.
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Published February 11, 2021

Dating app operator Bumble Inc. (BMBL) debuted on the Nasdaq today, raising $2.2 billion in its IPO and valuing the company at over $7 billion.

The company sold 50 million shares at $43 apiece, above the previous price range of $37 to $39, according to Renaissance Capital. Bumble also offered 5 million more shares than expected.

Bumble, which operates dating apps Badoo and Bumble, grew revenue from $360 million in 2018 to $489 million in 2019, though revenue growth through Q3'20 slowed to just 15% year-over-year. Nonetheless, the company boasted year-over-year user growth of nearly 19% as of September. Its apps currently serve over 40 million users on a monthly basis with an average of 150 million messages sent per day in the first three quarters of 2020.

Bumble's IPO contrasts to that of competitor Match Group, which joined the Nasdaq in Nov. 2015, selling 33.3 million shares for $12 apiece and raising $400 million. The stock closed at $15.20 its first day, giving the company a market cap of $2.9 billion. Now the dating app operator, known for apps like Tinder and Hinge, is valued at nearly $45 billion. Its average subscribers grew by 12% for the nine months through September. 

[Disclosure: Match Group was majority owned by IAC, the parent company of Investopedia and DotDash. It was spun off from IAC completely in July 2020.]

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  1. Renaissance Capital. "Dating app Bumble prices further upsized IPO at $43, above the upwardly revised range."

  2. Forbes. "Bumble’s IPO Is Priced For Perfection."

  3. CNBC. "Bumble vs Match Group: Two traders check out dating stocks ahead of Bumble’s IPO."

  4. Bloomberg. "IAC’s Match Group Gains After Raising $400 Million in IPO."

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