A dating app for mainland Chinese gays has received a US$30 million injection from United States fund investor DCM Ventures, the Hong Kong Economic Journal reported Tuesday.
Blued, described as the gay version of San Francisco-based Skout or Beijing’s Momo website, has 15 million users and claims to be the world’s most popular dating platform for gay men.
The new investment puts Blued’s valuation at US$300 million but the company has yet to make a profit as a free app, the report said.
Spending by the lesbian, gay, bisexual and transgender (LGBT) market is five times more than that of heterosexuals, according to a United States research firm.
Every dollar of LGBT spending will produce a return of as much as 18 times, it said.
Alibaba Group Holding Ltd. (BABA.US), Baidu Inc. (B1C.FRA) and Tencent Holdings Ltd. (00700.HK) are reportedly in talks to buy into Blued.
Co-founder Geng Le, who rose to prominence in 2012 when he was seen alongside Chinese Premier Li Keqiang during a World AIDS Day reception, is said to be weighing a public listing.
The reception was a turning point for the company, spurring extensive media coverage and drawing 70 million homosexuals to the app, thepaper.cn reported.
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