April 27 (Reuters) – Match Group is investing $100 million in Sniffies, a dating platform targeted at non-heterosexual men, in a deal giving the Tinder parent a significant minority position and the option of buying out the remaining equity in the future.
Match has been attempting a turnaround in recent times, reworking core features across its lineup to reduce negative experiences and focus on user experience as younger users grow more selective with dating apps.
• Sniffies has grown to an estimated 3 million monthly active users globally, according to Match’s statement.
• Match has applied this investment strategy earlier too, including with Hinge, where it first invested in 2017 before acquiring the business in late 2018.
• Dating apps are facing intensifying competition, with many now betting that AI-powered features can help them adapt to shifting user preferences and improve matchmaking.
• LGBTQ+ dating app Grindr last year ended talks on a $3.46 billion take-private deal by its two largest shareholders, due to uncertainty over financing.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Jonathan Ananda)
