Bumble’s Buzzing IPO

Bumble CEO Whitney Wolfe Herd joined the tech industry’s billionaire’s club after her dating app’s massive IPO.

Wolfe Herd founded bumble in 2014 and owns 21.5 million shares in the company that closed yesterday, worth more than $1.5 billion. 

The value of her shares makes her the world’s youngest self-made female billionaire. Depending on further growth in the market, her fortune could continue to blossom. 

The company offered 50 million shares initially planned to range from $28 to $30, giving it a valuation of $8.2 billion. 

Bumble closed its first day of trading at $70.31/share.

Bumble is the latest in a line of big-name tech firms to capitalize on a hot IPO market. 

Both Airbnb and DoorDash saw their shares skyrocket in price after their December debuts.

Wolfe Herd founded Bumble after parting ways with Tinder, which she co-founded and eventually sued for sexual harassment.  

The app, like Tinder, is free to use but makes money through subscriptions and in-app purchases.  The app is different from Tinder in that only women are allowed to initiate chats with potential male mates.  

For the first nine months of 2020, Bumble reported $413 million in revenue, with a loss of $28 million. 

The company operates two dating apps, which, combined, have over 40 million monthly users.  

Bumble’s biggest competitor is Match Group (MTCH), which owns Tinder, Match.com, OkCupid, and Hinge.