Investment firm Ithaca Holdings has acquired dating app Bumble for $1.3bn, marking a significant shift in the company's ownership. The new owners, Ravi Gupta and John Hegeman, will become co-chief executives of Bumble, which was founded 12 years ago by Whitney Wolfe Herd. The acquisition has been hailed as a "bet on the future of humanity," with the new owners emphasizing their commitment to using technology to foster meaningful connections.
Bumble's founder and current chief executive, Whitney Wolfe Herd, will remain "actively involved" in the business, working closely with the new owners. The company's valuation has soared since news of the deal emerged, lifting its company valuation to over $580m. However, this is still far below its peak valuation of over $14bn in 2021, when it floated on the Nasdaq stock index.
Bumble has faced significant challenges in recent years, including growing disillusionment among younger users with the process of browsing for dates. In 2025, the company cut almost a third of its workforce, citing an "inflexion point" in online dating. Despite these challenges, the company's share price has seen a significant boost since the acquisition announcement.
The acquisition comes at a time when dating apps are under pressure to convince users to pay for their services. Match Group, which owns apps including Tinder, OkCupid, and Hinge, has also seen its shares fall sharply from their peak in 2021. According to a report by the media watchdog Ofcom, adults in the UK are spending less time on dating apps than three years earlier.
Bumble has been working to incorporate new technology, including AI, into its app. In 2024, its chief executive, Lidiane Jones, told the BBC that AI had "exciting potential" for safety in dating apps. This year, the company unveiled several new AI features, including profile guidance to help people create dating profiles.
The new owners of Bumble plan to use technology to "renew and accelerate businesses...in a world transformed by AI." They believe that technology should work in service of human connection, and that this investment is a bet on the future of humanity. This contrasts with recent debates over the safety of AI, with some experts claiming that the speed of its development threatens the future of humanity.
Bumble was launched in 2014 by Wolfe Herd, who built the brand around a distinctive feature that only allowed women to initiate conversations with matches. However, the company recently abandoned this rule, prompting debate among users over whether the app had lost what set it apart from rivals. Despite these changes, Wolfe Herd remains committed to the company's mission of fostering meaningful connections.
Key points
- Bumble acquired for $1.3bn by Ithaca Holdings
- New owners plan to leverage technology to enhance human connection
- Company's valuation has soared since acquisition announcement
