On Monday, February 7, Bumble revealed the acquisition of Fruitz, a French dating app. Fruitz, which "encourages open and honest communication of dating intentions" using four different fruit metaphors, was founded in 2017 and runs on the "freemium" model – the app is free, and users can enhance their experience with in-app purchases.
According to Bumble, Fruitz has a large user base among Gen Z (people born between the late 1990s and the early 2010s), which could help the company reach high growth targets. However, Bumble did not disclose Fruitz's total user base, but is seeing improvement across France, Spain, Switzerland, Netherlands, Belgium, and Canada.
The deal between the two companies comes when people are using dating apps more than ever. But according to analysts from Goldman Sachs, there's still room for growth. Over the next years, the online dating market is expected to report a 13% combined annual growth rate, reaching $10 billion in 2025. The international market is expected to outpace the North American one.
To differentiate from the "swipe left" "swipe right" model, Bumble and Hinge implemented features such as audio, video, and experiences to the apps. Moreover, Bumble added two new sections – friendship and business-focused – believing that platonic relationships can be the next social growth mark.
After the news hit the wires, Bumble's stock price was trading 1.19% higher.
Sources: cnbc.com, finance.yahoo.com