Whitney Wolfe Herd has confirmed that Bumble is “actively pursuing” an Initial Public Offering as the brand’s growth is currently exceeding expectations.
The company has increased its annual revenue run rate to $200 million for 2018. This means it has already surpassed its prediction for the year, which was set at $150 million.
Wolfe Herd told CNBC: “We are a high risk to any of our competitors right now. Our growth is exceeding everyone’s expectations – our revenue is exceptionally higher than anyone had anticipated.”
Bumble gets the entirety of its revenue from subscriptions services as it is yet to incorporate advertising into its platforms. However, it is working to bring in advertising soon to boost growth and revenue opportunities.
Securing an IPO will go some way to help Bumble become available in countries all over the world.
The app is available in major English markets, as well as Germany and Mexico. There are further plans to expand into Asia and South America over the next 12 months.
Wolfe Herd believes that Match Group is threatened by Bumble’s development, and if it became available on the stock market it would have a detrimental effect on Match Group’s standing.
She told CNBC: “[Bumble getting an IPO] would not be favourable to Match’s stock price. Right now they have somewhat of a monopoly in the US public market.
“We’re very excited about this potential and it’s something we’re very focused on.”
The news has just broken that the two companies were unable to settle their lawsuits privately, and Bumble will now take Match Group to court, claiming they illegally obtained trade secrets.
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