BlueCity Holdings Limited (NASDAQ: BLCT), the parent of the LGBTQ+ social network Blued, has acquired Chinese gay dating app Finka for RMB 240 million (USD 36.5 million), BlueCity announced on Wednesday.
Finka, formerly known as “Aloha”, is a Tinder-style dating app designed for young men, run by iRainbow Hong Kong Limited. It matches users who right-swipe each other, allows posts and comments, and hosts livestreaming sessions. Per research firm Frost & Sullivan, Finka had more than 2.7 million registered users in 2019.
The deal marks BlueCity’s second acquisition after its initial public offering in July, as the company takes steps to become the Match Group for the LGBTQ+ community. In August, it bought Chinese lesbian dating app LESDO.
After the transaction, which is expected to close before mid-December, Finka will run independently with BlueCity’s financial and operational support. “Finka complements our Blued app, both in its functionality focused on dating and swipe, and in the demographics of its users,” said Ma Baoli, BlueCity’s founder and CEO, in the announcement.
“BlueCity is building a portfolio of apps and services designed to help community members across geographies and demographics. There is no ‘one size fits all’ dating or networking service, and we intend to continue to tailor our services to the specific needs of our community,” said Ma.
BlueCity raised USD 84.8 million in its Nasdaq IPO that valued the firm at USD 614 million. Its stock rose nearly 24% on Tuesday, to close at USD 13.50, still short of its IPO price of USD 16. In the second quarter of 2020, BlueCity’s total revenues reached RMB 247.4 million (USD 35.0 million), a year-on-year increase of 32.2%, while the net loss was RMB 3.3 million (USD 0.5 million).