5 Reasons to Invest in Bumble’s Upcoming IPO

Bumble, the online dating company led by Tinder co-founder Whitney Wolfe Herd, recently filed its IPO paperwork. I recently highlighted Bumble as one of my top IPO picks for 2021, and a deeper dive into its prospectus reveals five clear reasons to be bullish…

1. A female-oriented platform that goes beyond dating

Bumble’s namesake app is similar to Match‘s (NASDAQ:MTCH) Tinder, but it only lets women make the first move. Women have made 1.7 billion first moves since its launch in 2014, and it hosts approximately 30% more female users than male users.

Bumble has also expanded its platform beyond dating with Bumble BFF, a matching service for platonic friendships, and Bumble Bizz, a mode for professional connections. Those features could further differentiate Bumble from Tinder and transform it into a diversified female-oriented social network.

2. It owns another major dating platform

Wolfe Herd co-founded Bumble with the Russian billionaire Andrey Andreev, who previously founded the older dating app Badoo. Blackstone Group (NYSE:BX), Bumble’s biggest backer, subsequently bought out Andreev’s stake and handed control of both platforms to Wolfe Herd.

Badoo is popular in Europe and Latin America, while Bumble is more widely used in the U.S., U.K., Canada, and Australia. Together the two apps are present in more than 150 countries. Bumble is currently one of the top five highest-grossing iOS lifestyle apps across 30 countries, according to Sensor Tower, while Badoo is a top-five app in 98 countries.

3. A growing audience

Bumble ended the third quarter of 2020 with 42.1 million monthly active users (MAUs), including 12.3 MAUs on Bumble and 28.4 million MAUs on Badoo. It didn’t disclose its MAU growth rates, but it did reveal its year-over-year growth in paid users, who pay for perks such as unlimited swipes, overseas swipes, and the ability to see who likes you right away.

Bumble’s paid users rose 49% to 855,600 in 2019, then grew another…

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