BBA-MBA INTEGRATED PROGRAMME (2021-26)
Term-IX
Business & Government
“Is it boom time for dating apps?”
Submitted to
Dr. Trilok Sharma
Submitted by
Division B
Submitted on
14th March 2024
Sr. No Roll Number Name
1 217248 Priyanka Gupta
Contents
Acknowledgement...........................................................................................................................3
Student Declaration.........................................................................................................................4
Introduction......................................................................................................................................5
Current Trends and Growth Statistics..............................................................................................5
Market Analysis...............................................................................................................................7
Dominance of traditional matrimonial websites in India.............................................................7
Challenges faced by home-grown dating apps............................................................................8
Revenue trends and investor sentiments:.....................................................................................9
Technological Innovations and Future Prospects..........................................................................11
Wall Street and Investor Perspectives...........................................................................................12
Contrasting views on the future of dating app stocks................................................................12
Factors influencing investor sentiment and market performance..............................................12
Acknowledgement
I would like to thank Dr.Trilok Sharma, who gave us this golden opportunity to work, research,
and write on this interesting topic, and gave us his valuable suggestions and ideas during this
project. To all the relatives, friends and others who in one way or another shared their support,
thank you.
Student Declaration
I hereby acknowledge that this assignment is the outcome of my independent research and is my
original work. Any overlapping of sentences is purely coincidental, And I do not intend to
misuse it. The information is purely used for educational purposes.
Priyanka Gupta
217248
Introduction
The last decade has been the time when the dating era has experienced a broad range of
transformation, being powered by technology as well as deep societal restructuring. With up
common places and socialization areas being the prime spots for new love ventures, their
diminishment due to COVID-19 turned eyes to the digital setting, particularly the dating apps.
Livemint reports of an amazing effort among popular dating apps across the globe, with many
people about to try and find new partners around.
Because of the social distancing measures that were enforced during the pandemic, the trend of
using dating apps have increased rapidly resulting in the app store downloads and use of them for
the dating purposes to increase significantly. Sensor Tower discloses astounding count of
monthly users who create account with the top dating apps Tinder, Bumble and Hinge and up to
17% increment in January 2022 as compared to pre-pandemic era.
Current Trends and Growth Statistics
Recent data from Livemint and Sensor Tower signifies why the dating apps industry is seeing a
boost, probably because its popularity has grown. Livemint had stated that the dating
applications were experiencing a compelling surge in user engagement particularly by Bumble
originating from the United States and pegging 4 million users by July. Besides, the number of
Bumble chats and video calls has also been up considerably, approximately 40% in total, which
has revealed the rising level of virtual connections made by means of these channels.
Also, Tinder, the most popular app everywhere, has been accused of a large rise in conversations
rising by 39% on average as an in-house company representative reported. The user interactions
in these dating sites are no more confined to these two mainstream platforms as TrulyMadly also
experiences a three-fold increase in engagements and revenue from certain suburban and rural
areas for the last 10 months.
Independent calculations by the Sensor-Tower platform are also aligned with them, showing an
average annual increase of 17% in monthly active users of the top dating apps (Tinder, Bumble,
and Hinge) already in January 2022 compared to the 2019 levels. We should acknowledge the
fact that the case of Tinder is a true one, with it being the only option left for the users of who
most of them use it on a regular basis.
Bumble and Hing which are the competing brands are gradually gaining a good reputation
among the singles. The usage of the Bumble increased by 96% over the past three years, while
Hinge's audience had swelled greater than four-fold in the same time frames.
Market Analysis
Dominance of traditional matrimonial websites in India
Online dating app worldwide can be also said to be very popular, still India positioned itself as
being the top destinations of dating sites. Such platforms have been part and parcel of Indian
cultural scene for ages, having served as an old mechanism of finding partners based on various
factors haplogenetically correlated to matchmaking such as caste, community, and horoscope
matching. The startups have proved to be giants' marketers and they are constantly proved the
old-time markets like Shaadi.com, BharatMatrimony, and Jeevansathi.
Traditional matrimonial online websites in India are the undisputed leaders in the area for many
reasons. First, the widespread family-oriented social norms and arranged marriages held by
Indian society additionally magnify the need for such platforms where families are also the main
players in the match making process. Such web portals providing this kind of look often tailor
after parents’ and the elders’ choice of desired mates, mainly in terms of family background,
education or career.
Moreover, popular sites well reputed and branded are the real reason behind the continued
dominance of the matrimonial websites In the views of many users this type of platforms are
trustworthy and secure because they stayed in the market for a long time and at the same time
obeyed the common pattern for matchmaking.
On the other hand, the emergence of dating apps on online comes to make the matrimonial sites
more difficult to combat, especially among youngsters. An independence in romantic choices is
joined by a decreased adherence to societal norms in building relationships, thereby millennials
will look for that to fill their personal romantic wants. They are getting the traction but as a
consequence, standard matrimonial sites are obliged to make adjustments to their offers in order
to compensate the changing audience needs and the facilities presented by the dating apps.
Challenges faced by home-grown dating apps
One of the major problems is that these big players are from across border such as Tinder and
Bumble and so far they have been able to create a good base in the area of online dating in India.
The monetary advantage of the multinational giants, the robust brand recognition, and the
technological expertise are the factors of competition hard to overcome for national applications.
Furthermore, commonly, global applications manage to have a larger user base and more
extensive marketing budgets, this makes it even harder for local players to attract and retain
users.
Apart from this larger apps also find it challenging to comply with local regulatory requirements
and address the specific sociocultural obstacles of india. Matters, like the image of online dating
among community, privacy and safety in this area, and cultural differences on parenthood are the
hurdles on the way of online services. To be able to get through with these quirks is a fine tuning
that the applications created for the market should be able to understand and that balance
between creativity and cultural sensitivity is so important but at the same time the applications
should be trusted by the users.
On the other hand the Indian market's psych of mindset towards the price sensitivity is one of the
significant issues that home-grown dating companies are struggling with. Generating income
while giving visitors value without driving them off is a fine line the digital marketing team
needs to toe. Indian users know that it's usually free or low-cost and this makes it difficult to
encourage some dating apps implement a subscription model or offer premium services.
Revenue trends and investor sentiments:
Likewise, the online dating industry in India gives both, the opportunities and the challenges has
reflected positively and fairly by the revenue trends and investor views. There is no doubt the
market has a large growth rate, to reach a projected $65.09 million by 2028, however, among
investors, some issues are creating a stir. They are concerned with the sustainability and
profitability.
With regard to the industry's direction in revenue, the usage of freemium model is increasingly
evident where free basic ones are for function and the premium subscriptions will unlock the
additional features. This model has already been shown to be successful for giants like Tinder.
Tinder had a massive the game, which reached about $12 billion in 2019, most of which came
from subscriptions. Additionally, making an independent production home grow application can
copy the success of these popular apps and be able to make money out of their platforms be the
subject of a debate in the investment world.
The investors' sentiments about online dating in India, vividly, have been influenced by the
market trends, user engagement numbers and also regulations. Although the market offers great
potential for expanding the company, investors are still hesitant since the market has high risks as
it demands a competitive atmosphere, uncertain regulations, and difficulties related to users
acquisition and retention.
Evolution of User Behavior
Shift towards valuing meaningful conversations and emotional well-being
It is noteworthy that there’s a recognizable shift in users’ reactions to the new quality-based
relationships, emotional well-being, and on more dating platforms. The issue is summarized by
the fact that 72% of online daters experience requests to get premium features. There is an
evident doubt in their minds on whether their engagement in online dating is based on more
sublime things or just swiping. Such a phenomenon is also inextricably linked with the increased
use of dating applications where people look for someone with whom they feel comfortable and
relationship is the main goal of their dating.
Influence of social media adoption on digital platforms
The proliferation of social media networks has ever so increased its power over social
interactions and individual attitudes among members of online dating communities. The socially
media integration contributes towards apps using the data more precisely and providing different
users with more specific matches and interactions. It is a proof of the connection that is formed
among users, thus helping people build a sense of familiarity and trust, which in turn leads to
long-term engagement and retention rates.
Technological Innovations and Future Prospects
Integration of AI and machine learning for enhanced matching
The marking of the dating platforms' future is on the integration of the artificial intelligence (AI)
innovation and machine learning algorithms as they strive to reform the matchmaking procedure.
Today, the brands like Hinge, Badoo and Tinder that lean on the use of AI, is thinking up
solutions to analyze user behavior and to provide a higher degree of accuracy and relevancy in
match suggestions. Innovations such as AIMM (an AI-operated matchmaker), are starting to
discover paths that AI can be used to match dates and provide feedback for swipes and fill-ins
without users having to manually swipe and fill in profiles.
Introduction of new features by leading dating apps
Though the ever-changing dating scene is known for its competition, leading dating apps are
trying their best to bring exciting new features that will ensure user engagement and
satisfaction. Augmented reality (AR) is trending as one of the possible technologies for live
contacts; its applications like FlirtAR work based on geolocation that, in fact, make casual
associating not just possible but likely.
Predictions for the trajectory of the dating app industry
As technology is becoming more advanced year by year, there is likely to continue to be positive
developments and at the same time complexity might grow in the dating app industry sector
too. Through AI, AR, blockchain as well as DNA matchmaking, the capacity and certainty of
matchmaking are glimpsed to be in impressive increase together with the betterment of the user
experience.
Wall Street and Investor Perspectives
Contrasting views on the future of dating app stocks
Investors are divided regarding the investment attractiveness of dating Application stocks
because of their various points of view about the future. On the other hand, while optimists’ point
out the potential of the online dating industry thanks to tech advances and social conformity
shifts, they also argue that it could be the key in taking this industry to new heights. The coming
years are forecast to witness a tremendous boom of the global online dating market, which is
expected to expand from $2.5 billion in 2020 to $3.5 billion in 2025. Such an increase in the
market, in this sense, gives us reasons to be optimistic. On the other side, there are investors who
are still reluctant as they are afraid of market saturation, intense competition and regulatory
challenges which may come along with the increasing popularity of crowdfunding.
Factors influencing investor sentiment and market performance
For investors sentiment and performance of dating apps, several factors exhort. With market
dynamics, investors are committed to the success of the company, factors such as user growth,
revenue streams, and competitor's positioning play the main role in determining investor
confidence. Technological innovations , for example , AI driven matchmaking & augmented
reality features , can be considered as success signals which can, indeed , strengthen investor
confidence in growth prospects ahead.
Scenario Analysis and Responsiveness to Market Changes
Projections from HTF Market Intelligence Consulting Pvt Ltd
HTF market intelligence consulting Pvt Ltd forecasts the digital dating market to grow at a
strong pace driven through technology enhancements as well changing user behavior. According
to the analysis, the market will stay on an upward trajectory for the duration forecast, emanating
from factors such as the smartphone penetration upraise, Internet usage growth and changing
social norms.
Forecasts for market size and growth rate
The market research company forecasts a great increase, by 7.7%, in the worldwide the online
dating market between the years 2023 and 2030 which will average CAGR of X%. Therefore, it
can be said, that this direction of business suggests auspicious forecast for dating app developers
who have plenty of chances for profit and increase their market share.
The predicted market growth is a breeding ground for innovation and expansion that will lead
businesses to involve themselves in investing in technology-driven solutions and bolt on
partnerships. Also, the officials should be flexible and adaptable to the changing customer's
choices and rules and regulations to win the battle of capturing potential market opportunities.
Conclusion
The growth of dating apps has changed the way people connect and find partners; instant access
to huge seesions of potential candidates and the ease of selecting or getting in touch with them
will always make the process of looking for a match easier.
To conclude, online dating is experiencing a significant boom, led mainly by the technological
breakthroughs, the changing user preferences and the market hunger. The fact that there are
many challenges is not enough evidence to argue that the dating app industry is truly booming.
But, it is undeniable that the date app industry will advance successfully, only if we make
adjustments and maybe have foresight when we plan our strategies to emerge as victorious in the
long term.
References
1. https://sensortower.com/blog/dating-apps-2022/
2. https://markets.businessinsider.com/news/stocks/online-dating-app-stocks-wall-street-
tinder-hinge-match-bumble-2023-6
3. https://news.asu.edu/20220208-discoveries-online-dating-booming-changing-pandemic-
era
4. https://www.linkedin.com/pulse/online-dating-services-market-size-industry/
5. https://www.statista.com/outlook/dmo/eservices/dating-services/online-dating/india
6. https://www.toptal.com/finance/business-model-consultants/online-dating-industry
