A leading social media platform and dating company with a target demographic announced a SPAC deal after market close Monday.
The SPAC Deal: Grindr announced a SPAC merger with Tiga Acquisition Corp (NYSE:TINV). The deal values the company at an enterprise value of $2.1 billion.
Tiga Acquisition Corp. public shareholders will own 14% of the company after the merger closes, assuming no redemptions at the merger vote.
About Grindr: The No. 1 social network for LGBTQ+, Grindr calls itself essential to its target demographic.
The company has 85% brand awareness, according to its presentation.
One area the company highlighted was an average of 61 minutes spent on its platform daily by users, which ranks higher than dating app peers such as Bumble Inc (NASDAQ:BMBL) and ahead of social media platforms including Twitter Inc (NYSE:TWTR) and both Facebook and Instagram, two units of Meta Platforms Inc (NASDAQ:FB).
The company counts 80% of its users as 35 years of age or younger. Here are the current age demographics:
- 33%: 24-29 years old
- 27%: 18-23 years old
- 20%: 30-35 years old
- 11%: 41+ years old
- 9%: 36-40 years old
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Growth Ahead: Grindr sees its total addressable market growing both in size of users and monetization opportunities.
The population of LGBTQ+ was 558 million in 2021 and is expected to grow at a compounded annual growth rate of 5.4%, according to the company’s presentation.
Grindr currently has around 6% of paying users and said it is in the early innings of monetization. The company has average revenue per user of $16, compared to $30 for Bumble and $13 for Tinder.
The company launched several premium add-ons in the first quarter, which could increase the number of paying users going forward.
The current market size of $4 billion could hit $14 trillion in the future based on the current GDP estimate for the LGBTQ+ population, the company said.
Financials: Grindr had revenue of $147 million in fiscal 2021, up 30% year-over-year.
The company also had an adjusted EBITDA of $77 million in fiscal 2021.
Grindr estimates its 2022 revenue to increase 35% to 40% on a year-over-year basis.
TINV Price Action: Tiga Acquisition shares are up 1.07% to $10.36 in after-hours trading Monday.
Photo by BETZY AROSEMENA on Unsplash
