Grindr LLC, the dating app that specializes in connections for the LGBTQ+ community, has agreed to go public through a blank-check firm in a deal that values the combined company at $2.1 billion including debt.
The predominantly male dating app is merging with Tiga Acquistion Corp., which debuted in November 2020. The special purpose acquisition company isn’t offering any private investment in public equity, or PIPE, deals. The business combination will provide Grindr with an estimated $384 million, which the company will use to pay down debt and strengthen its balance sheet. The SPAC would have to liquidate later this month if it failed to reach a deal with a potential merger target, after several extensions of the liquidation deadline. Tiga shares rose about 1% in extended trading in New York.
While rivals like Match Group Inc.’s Tinder and Bumble Inc. are LGBTQ+ friendly, Grindr is the most popular among members of the community. The app has about 11 million monthly active users, a fraction of the 100 million users across Match’s apps like Tinder and Hinge. Competitor Bumble Inc. had 40 million monthly users last year, according to company filings. Close to 80% of Grindr’s users are under 35.
Tanya Singh is pursuing Master’s degree in Journalism and Mass Communication from Chandigarh University. She is a passionate blogger, who understands the power of words. Tanya is currently working as an Intern at The Shining Media and she is reachable at tanya2801singh@gmail.com
