A leading social media platform and dating company with a target demographic announced a SPAC deal after the market closed on Monday.
The SPAC deal: Grindr announced the merger of PSPC with Tiga Acquisition Corp. TINV. The deal values the company at an enterprise value of $2.1 billion.
The public shareholders of Tiga Acquisition Corp. will own 14% of the company after the merger closes, assuming there is no takeover in the merger vote.
About Grindr: The #1 social network for LGBTQ+, Grindr says it’s 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 daily on its platform by users, which ranks higher than peers of dating apps such as Bumble Inc. BMBL and in front of social media platforms, including Twitter Inc. TWTR and both Facebook and Instagram, two units of Meta Platforms Inc Facebook.
The company has 80% of its users aged 35 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 and over
- 9%: 36-40 years old
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Future growth: Grindr is seeing its total addressable market grow in both user size and monetization opportunities.
The LGBTQ+ population was 558 million in 2021 and is expected to grow at a compound annual growth rate of 5.4%, according to the company’s presentation.
Grindr currently has about 6% paying users and said it was in the early rounds of monetization. The company has an 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 may increase the number of paying users in the future.
The current market size of $4 billion could grow to $14 trillion in the future based on the current GDP estimate for the LGBTQ+ population, the company said.
Financial: Grindr reported revenue of $147 million in fiscal 2021, up 30% year-over-year.
The company also recorded adjusted EBITDA of $77 million in fiscal 2021.
Grindr estimates that its revenue for 2022 will grow 35-40% year-over-year.
TINV Price Action: Shares of Tiga Acquisition are up 1.07% at $10.36 in after-hours trading Monday.
Photo by BETZY AROSEMENA on Unsplash