Hong Kong dating app DateTix has just sold one of its consulting businesses in order to generate revenue to help grow its main on-demand dating property.
Its consulting services business, which was previously owned by Enverro, is being bought by Persistent Systems Limited, a company listed on the National Stock Exchange of India.
The business was acquired for $780,000, and the deal includes all the company’s current staff and existing customer contracts.
The deal stipulates that $500,000 will be paid on closing, and another $280,000 paid a year after, if certain terms of the deal are met.
DateTix said they sold the “non-core” business because of its recent focus on the on-demand dating app, with the sale allowing more resources and greater attention to be given to growing the app.
The company expects the sale will initially bring revenue down, but any profitability shouldn’t be affected, with funds from the sale being funnelled into product development and marketing for the app.
DateTix is a Hong Kong-based social platform designed to help users to meet new people offline, whether it be for dating, relationships or platonic purposes.
Users of the app – which is live in Hong Kong, Beijing, Shanghai, Sydney, Singapore & Melbourne – can choose to either host a date, or browse through proposed dates, and pick one that takes their fancy.
The brand was founded by entrepreneur Michael Ye, who also built an early online dating site in New York back in 2004.
Last October, DateTix was acquired by cloud software platform Enverro Limited for 12.5m shares, and a total of 12m performance shares.
Read more about the company here.