Grindr, gay men social network has sold its major 60% percent stake to Chinese gaming company Beijing Kunlun Tech for $93 million. The deal which values six-year-old Grindr at $155 million at the first time the US company and had taken outside investment.
It has two million users and spends an average of 54 minutes inside the app. Here are impressive engagement rates and company has generated $32 million in revenue in 2014 up from $25 million one year earlier.
Grindr founder and CEO Joel Simkhai elaborated its investment as “a huge vote of confidence in our vision to connect gay men to even more of the world around them,” but stressed that it would be “business as usual” inspite of its capital influx.
Grindr and Simkhai employee retain the remaining shares in the company and expect the alliance will be allowing the service which has become the defacto hook up app for gay man to expand into new areas.
“We have taken this investment in our company to accelerate our growth, to allow us to expand our services for you, and to continue to ensure that we make Grindr the number one app and brand for our millions of users,” Simkhai mentioned in company post.
“We have users in every country in the world, but in order to get to the next phase of our business and grow faster, we needed a partner,” added Carter McJunkin, Grindr’s COO.
The deal will also allow Beijing Kunlun Tech to expand its own reach outside China. The company being listed on China’s Shenzhen stock exchange and are diversifying and expanding its business. It recently made an investment $27 million in micro-loan company Qufenqi and $15 million in fresh produce e-tailer 1Mxian.
This recent investment will see Beijing Kunlun tech in bringing Grindr to China and app known as Blued top dating service for gay men with it’s reported two million members.