What It Is: Following Bloomberg’s December reporting of Bumble filing for an IPO, the deal has been formally announced and continues to progress as of Jan 15, 2021 according to Pitchbook. The disclosure seeks a $6-8 billion valuation and leaves behind any projection of the stock’s price, mention of the number of shares being offered, or expected to remain outstanding following its IPO. It has been announced that Bumble will use BMBL as its ticker on NASDAQ.
What many many investors may not know about Bumble is...
The variety of connections it’s been designed to make. In addition to a dating platform, Bumble offers services that promote networking and new friendships. The opportunity for growth in these areas shouldn’t be underestimated, as it satisfies Gen Z’s newfound need for help in making friends while quarantined, often in college or new cities where it’s already difficult to connect.
Its emphasis on female empowerment. Led by CEO Whitney Wolfe Herd (former VP Marketing and Co-Founder of Tinder), Bumble is designed to “shift old-fashioned power dynamics and encouraging equality from the start” by requiring women to make the first move in all same sex matches. Bumble’s commitment to advancing women in corporate leadership extends to its board of directors that’s 73% female.This would be in contrast to the norm,where a blunt majority of board seats are held by men. If the offer follows its anticipated timeline of a February 14 IPO, Wolfe’s accomplishment of being the youngest female CEO to lead an IPO would be made within months following the inauguration of America’s first female Vice President, Kamala Harris.
The strategic advantage it holds relative to brand management and community engagement. Bumble hires campus ambassadors to effectively promote the app and its many features throughout colleges and universities. Prior to COVID-19, campus ambassadors would hold a variety of promotional events. Bumble was also quick to jump to TikTok advertizing by leveraging influencers and introducing viewers to some of the app’s “top performers''. As an effect of its marketing strategy, organic conversations also work to promote the brand when users share profiles and discuss who they’ve seen on the app.
Why It Matters: NASDAQ’s BMBL listing has potential to contribute to the currently popular IPO market. Its general advisors include Citigroup, Goldman Sachs, J.P. Morgan,and Morgan Stanley. Currently, Bumble’s largest shareholders are Blackstone and Wolfe herself. TTM financials report 417,000 USD in Total Revenue and 131,870 USD (Normalized) EBITDA. Read more about the IPO’s early report.