Bumble IPO: Stock Rumored to Come in 2021
Is a Bumble IPO coming to the market? Rumors say it is. According to sources, the company is talking to banks about going public. And it’s hoping to raise its value beforehand.
But is Bumble stock a good investment opportunity? Here’s what we know…
Bumble IPO: The Business
Tinder co-founder Whitney Wolfe Herd founded Bumble in 2014. Bumble is a location-based dating app. Users are able to swipe on potential matches and match if both people swipe right. However, the woman must message first. The idea is to challenge social norms of heterosexual relationships and empower women. For same sex relationships, either party can message first.
In additional to Bumble Date, the platform also offers Bumble BFF and Bumble Bizz. But Bumble Date is the most popular with over 100 million users. And it’s the second most-popular app behind Tinder. Bumble is a free app. But there are certain features that can be unlocked for a fee. For example, if a woman doesn’t message a guy within 24 hours on Bumble Date, they’re unmatched. But men have the option to purchase an additional 24 hours.
Investors are eagerly waiting for news. Bumble stock would be the latest addition to tech IPOs, which surged during 2020. But why is the Bumble IPO coming now?
Why is Bumble Going Public Now?
The 2020 IPO market saw many successes. So it would be good timing for the startup to follow suit. Multiple tech IPOs hit the market and more are filed. This includes companies like Snowflake, Airbnb, Palantir and Unity Technologies. And you can also check out other top recent IPOs.
The coronavirus brought an increase of users to the platform. When people had to stay home, they sought out social connections online. The global online dating service market is supposed to be worth $9.2 billion by 2025.
Due to the coronavirus market crash, the IPO market came to a near halt in the first quarter of 2020. But as the market continued to show signs of recovery, companies took advantage. There are 111 IPOs year-to-date. Another 87 filed in 2020, 60 of which were in the last month.
After the Apple and Tesla stock split, some investors think the tech sector is undervalued. Others think it’s corrected. But it looks like the Bumble IPO won’t be hitting the market until 2021. That means investors have time to see how the market reacts to upcoming tech IPOs before investing in Bumble stock.
But let’s take a closer look at Bumble…
The Bumble App: What Will Bumble Stock Fund?
There are three platforms on Bumble—Date, BFF and Bizz.
Bumble Date. The app originally was meant for dating to challenge popular dating app Tinder. But Wolfe Herd wanted to help empower women and level the playing field. So, Bumble set itself apart by adding the unique feature of women messaging first. Men don’t have the option in heterosexual relationships.
The company states it helps decrease message spamming, unsolicited pictures and uncomfortable conversations because the woman gets to set the tone. And according to the site, the app has 94,000 new users every day and 23 million new matches are made each week.
Bumble BFF. Bumble for Friends (BFF) was introduced in 2016. It’s a way to meet people and create platonic relationships. BFF is a global platform, which makes it perfect for people moving to a new place or simply looking for more friends. Similar to Bumble Date, users swipe on potential matches. However, BFF provides users of the same gender, which allows either party to message first.
Bumble Bizz. Bumble Bizz launched in 2017. it’s the app’s version of LinkedIn. The goal is to help individuals create a professional network. Sometimes people have a hard time networking, particularly recent graduates. However, Bumble decided to keep its “female-first” model from Bumble Date. But the site states it shouldn’t be used to discriminate against men.
It’s possible Bumble stock will help fund a new feature. Or funds may help improve current user experience. Whatever the reason, the company is preparing for a Bumble IPO.
Bumble IPO Details
Bumble filed confidentially in 2020. As of January 15, 2020, the company’s filing is public. For the most up-to-date information, check out our latest Bumble IPO article.
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Tech stock were a favorite in 2020. And many investors think the trend will continue in 2021. If it does, the Bumble IPO could be a favorite.
About Amber Deter
Amber Deter has researched and written about initial public offerings (IPOs) over the last few years. After starting her college career studying accounting and business, Amber decided to focus on her love of writing. Now she’s able to bring that experience to Investment U readers by providing in-depth research on IPO and investing opportunities.