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Is Grindr preparing to be sold?

Is Grindr preparing to be sold?

Grindr

Grindr has declined to comment on rumors that it may be looking for a buyer.

According to Bloomberg, the hugely popular gay dating app has hired banking firm Raine Group LLC to provide it with advice on a possible sale.

Bloomberg said it had received its information from sources which wished to remain anonymous. The sources were unable to say what value might be placed on the company.

Grindr was founded in 2009 by Joel Simkhai with $5,000 of self-funding. One of the first hookup apps to take advantage of smartphone, location-based technology, its popularity and growth amongst gay and bisexual men around the world has been phenomenal.

It now has 5million users in 192 countries, with 29.1% revenue growth year-on-year. Around 75% of its revenue comes from premium subscribers. Around 2million of its users log on to the app each day.

According to an interview with Bloomberg TV last month, Simkhai said that the company, which he started without any business plan, still has no outside investors. This means that he could be in for a significant windfall if he does decide to sell.

Gay Star Business approached Grindr to confirm or deny the story, but a company spokesperson declined to comment. Raine Group have also been approached but have not yet responded.