Queer dating and hook-up app Grindr to go public with multi-billion dollar valuation

LGBTQ

UKRAINE – 2021/08/31: In this photo illustration a Grindr logo is seen on a smartphone and a pc screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)

Grindr is set to go public in a $2.1 billion flotation after entering an agreement to merge with Tiga Acquisition Corp.

The popular LGBTQ+ dating app made the announcement on 9 May with rollover equity to be valued at $1.6 billion and an estimated post-transaction enterprise value of $2.1 billion.

The merge is expected to raise an estimate of $384 million, $100 million of which is from a forward purchase agreement. The remaining $284 million comes from TAC’s trust.

This is a big step for the already huge dating app. Proceeds are expected to further bolster Grindr’s growth exponentially.

The newly formed Grindr Inc is already host to the most popular social network in the world for the LGBTQ+ community. Given its huge success in the marketplace, it’s no surprise this merger is coming with the publication of the company.

James F Lu, chair of Grindr’s board of directors, said: “Bringing Grindr to the public markets with TAC furthers our mission to connect the LGBTQ+ community. This transaction is a milestone event, not only for our iconic company, but also for the community we serve around the world.

“We are grateful for the resilience, courage, and creativity that are some of the LGBTQ+ community’s unifying characteristics.”

Currently, Grindr’s existing equity holders are expected to own around 78% of the shares at the time of closing.

Chairman and CEO of TAC, Raymond Zage, explained: “The business combination with Grindr represents a tremendous opportunity to invest in critical social infrastructure for a traditionally undeserved community. Grindr has established itself as the primary social network for LGBTQ+ people, enabling meaningful expansion of its monetisation.”

Zage is to be added to Grindr’s board along with current Grindr CEO Jeff Bonforte and James F Lu, who will continue as chair after the transaction has been made.

“We are thrilled to work with Ray Zage and Ashish Gupta and the entire TAC team, and appreciate their confidence and support in this important journey.”

The agreement was negotiated with the help of the global Executive Search firm Audeliss which specialises in diversity, equity, and inclusion.

Grindr itself has never been bigger, with approximately 10.8 million monthly active users in 2021 alone and $147 million non-GAAP revenue in 2021.

Increased revenue is expected to contribute to the company’s growth runway. This includes improving the core user experience, leveraging the industry playbook to drive monetisation and add further revenue streams, as well as expanding product offerings.

Whilst some might scoff at the prospect of added revenue streams, only time will tell in what form they will take, whether it’s at the cost to the consumer or through other means.

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