Cupid has seen investor Toscafund offload its 16% share in the company, according to The Scotsman.
Toscafund is a hedge fund founded by Martin Hughes, and yesterday Cupid revealed that they are selling their 11.2m shares, worth around £5.1m.
The hedge fund, which is currently chaired by former RBS chief executive Sir George Mathewson, bought an 8.5% stake in the Edinburgh-based online dating company last year.
Speaking to The Scotsman, Cupid chief executive Phil Gripton said he was unsure as to the reasons for the sale:
“Martin Hughes has his own agenda and it’s for him to decide what he wants to do. We’re waiting to hear what has happened.”
Asked if he was concerned about the sale, he said: “Not particularly. We spent three days with investors immediately after our results and everyone was supportive of our story.”
Gripton took over as chief executive from Bill Dobbie at the end of last year – who has remained at the company as a non-executive director, and is now its largest shareholder, with 17.6%.
The news comes weeks after Cupid reported a loss of £7.9m for 2013, compared with a profit of £9.2m in 2012.
Their revenues at the end of December finished at a flat £26.6m.
Cupid have said they are looking to more long term revenues and improving customer service for the future.