'A bet on the future of humanity': Buyers back 'love and family' as they snap up dating app Bumble for £980m

Dating app Bumble has been snapped up in a £980million deal that its new owners said was a ‘bet on the future of humanity’.

The company, set up by founder and chief executive Whitney Wolfe Herd 12 years ago, has agreed to be taken over by US investment firm Ithaca Holdings.

Ithaca co-founders and co-chief executives Ravi Gupta and John Hegeman said: ‘Technology should work in service of our deepest source of fulfilment, human connection, and this investment is a bet on the future of humanity.

‘People and societies will always need connection, relationships, love, and family, and we are excited to build on Bumble’s legacy and share its mission with the next generation of members.’

Wolfe Herd, now 37, became the world’s youngest female billionaire when she floated Bumble on the stock market in New York in 2021.

The American entrepreneur, who also founded Tinder, backed the takeover and said she would remain ‘actively involved’ with Bumble, which also owns dating app Badoo and friendship app BFF.

Shares in Bumble soared 57 per cent in overnight trading on the Nasdaq in New York after the deal was announced.

The group is expected to remain based in Austin, Texas, and keep its offices in New York City and London.

Launched in 2014, the Bumble app differentiated itself from competitors by having women send the first message in heterosexual matches.

The app, whose main competitors include Tinder and Hinge, both owned by US company Match Group, later changed its approach to allow everyone to initiate conversations.

Bumble, along with Tinder and Hinge, have faced declining user engagement and pressure to refresh their app experiences, including using AI.

Bumble group’s total revenue dropped 15 per cent to £159million in the quarter to June 30.

Earlier this year, Bumble announced several new AI features, including profile guidance to help people create and enhance their dating profile.

Ithaca’s co-founders said: ‘Bumble has a unique combination of essential attributes, including its trusted brand and loyal community.

‘As technology and dating habits evolve, we see huge potential to take it into the next era together, building on the foundation Whitney and the talented Bumble team have built.’

Wolfe Herd said: ‘Bumble was founded on a simple belief: meaningful relationships are essential to a healthy, happy life.

‘Today, that belief feels more important than ever.’

She added: ‘As Bumble’s founder, my belief in this company and its potential to positively impact people around the world has never been stronger.

‘That is why I will remain actively involved with Bumble.

‘I believe deeply in Bumble’s future, and I look forward to working alongside Ravi, John, and the Bumble team as we continue to innovate, create meaningful connections, and write the next chapter of Bumble’s story.’