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Why a local company's IPO means Austin will go to sleep tonight a billion dollars richer than when it woke up
(Shutterstock)

Bumble Inc. found love—and money—in a big way Wednesday afternoon as Wall Street "swiped right" on the Austin company.


Bumble, now known to the markets as BMBL, raised more money than expected from investors, who in its Initial Public Offering will start actively trading on the NASDAQ tomorrow at $43 a share.

Austin CEO Whitney Wolf Herd's 11% stake in the company is estimated at around $1 billion in value. Herd founded the company in 2014 after previously co-founding and leaving the hookup app Tinder, which is now Bumble's main competitor.

Bumble focuses on giving women more power in dating by requiring them to make the first move when talking with potential suitors.

"By empowering women across all of their relationships, we believe that we have the potential to become a pre-eminent global women's brand," Herd said on the company's virtual investor IPO roadshow.

Bumble has over 42 million monthly active users in over 150 countries as of the end of September 2020. Although the app is free to use, the company generates most of its revenue with paid subscriptions which is roughly about 2.4 million paying users. Up from last year's $362.6 million, Bumble generated revenue of $416.6 million for the first nine months of 2020.

With corporate headquarters and much of its workforce located in Austin, Bumble's IPO will add to the flood of money into the city. Wolfe will become a billionaire, or close, and many employees who hold stock options will become instantly wealthy.

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