Wednesday 2 September 2020 11:46 am

Dating app Bumble prepares for IPO above $6bn

Dating app Bumble is the latest technology company to be reportedly preparing for an IPO that could come early next year.

The app, which lets women make the first move, could seek a valuation of $6bn to $8bn, according to Bloomberg, citing people familiar with the matter.

Read more: Bumper summer for IPOs with fastest start to second half since 2007

The report added that while Bumble is talking to banks it has not yet settled on a lineup and the timeline for an IPO could still change.

It would be the latest US tech firm to consider a debut as markets recover from the pandemic that forced several companies to postpone their IPO plans.

Listings fell off a cliff as the pandemic hit, with March, April and May totals at their lowest for their respective months in over a decade.

But activity is starting to pick up as technology firms hope to ride the wave of the recovery. The technology-focused Nasdaq in the US has been the most active exchange this year, with debut listings raising $26.8bn, among them Warner Music Group ($1.9bn) and Zoom (£0.9bn). 

There are high value listings still to come as Airbnb resumes plans to float after coronavirus stalled plans earlier this year.

Alongside Bumble, the US-based food delivery startup Doordash is moving on with plans to float in the fourth quarter after confirming a $400m raise in June.

Doordash had considered going public with a direct listing but has opted for a more traditional IPO, according to Bloomberg.

Read more: Vodafone targets 2021 IPO for European towers unit

Blackstone took a majority stake in Bumble last year, when it was known as Magiclab, in a deal that valued the company at $3bn. As part of the deal, Magiclab’s founder Andrey Andreev sold his stake and stepped down from the business.

He was replaced as chief executive by the founder and chief executive of Bumble, Whitney Wolfe Herd.

Bumble did not respond to requests for comment. Blackstone declined to comment.