Joel Simkhai’s Grindr LLC, location-based dating app for gay men, has sold a 60 percent stake for $93 million to Chinese gaming company Beijing Kunlun Tech Co.
Grindr said Monday the deal values the company at $155 million. “Our new alliance will allow us to further expand and offer a more comprehensive array of proximity-based services, ” founder and CEO of Grindr, Joel Simkhai, said in a statement.
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According to the company, Grindr logs more than 2 million daily active users in 196 countries. Grindr generates revenue through a combination of advertising and freemium features that users can access through subscription. Grindr hasn’t accepted any previous investment. After the sale, Mr. Simkhai and employees will own the remaining 40 percent stake in the company.
Beijing Kunlun said it sought the stake in the world’s most famous app for gay people because Grindr described its users as “rich people who know technology.” Beijing Kunlun also said it was impressed by the average Grindr user spends 54 minutes a day on the app, according to the company.
