App-based dating service Coffee Meets Bagel has raised roughly $7 million in Series B funding, per an SEC filing. The round values the San Francisco-based startup at $82 million, per PitchBook data.
Coffee Meets Bagel has not yet replied to a PitchBook request for comment.
The round comes just as Facebook enters the online dating game—one that Tinder and Bumble, two popular dating apps, have dominated in recent years. Like Bumble, the Coffee Meets Bagel app is centered on women's preferences. Female-identifying users choose who is able to communicate with them through the app.
Coffee Meets Bagel, named because matches are referred to as "bagels" in the app, has previously raised just over $10 million in equity funding from investors including DCM Ventures, Quest Ventures and Azure Capital.
The founding team consists of three sisters, Arum, Dawoon and Soo Kang. The trio famously pitched to Mark Cuban on "Shark Tank" in an episode that aired in 2015, only to reject his $30 million takeover offer, which was the largest in the show's history. Coffee Meets Bagel was reportedly expecting $10 million in sales the year of their appearance on "Shark Tank."
For Coffee Meets Bagel, Facebook's entry into the online dating game makes it an apt time for a fresh infusion of capital. Facebook CEO Mark Zuckerberg announced its new initiative, Facebook Dating, at the social media giant's annual developer conference earlier this month. The service will be an opt-in feature within the Facebook platform.
Coffee Meets Bagel's Dawoon Kang told Observer.com this week that Facebook's entry into the dating space is positive for her company.
"The fact that a company as big as Facebook is jumping into dating speaks to the growing demand and the market opportunity of this space," Kang said in the Observer article. "We are happy to see Facebook acknowledging the need to create meaningful relationships beyond hookups, as the online dating culture definitely needs to shift away from quantity vs. quality interactions."
Several other app-based dating services have attracted VC interest. French startup Happn has raised about $66 million from Raine Ventures, DN Capital and more. Hinge, which many accused Facebook of copying to build out its new dating feature, has pulled in roughly $26 million and was most recently valued at an estimated $75.5 million. Clover has about $11 million in VC backing and The League has raised about $3 million.
The business of romantic relationships has proven to be a lucrative one. Match Group, which owns a portfolio of dating services including Tinder, beat analyst estimates with revenue of about $379 million in 4Q 2017, per Reuters. Tinder's success contributed to the better-than-expected figure. The app, which is valued at an estimated $3 billion, added 1.5 million paid subscribers in 2017 and now has some 3 million paying users, also per Reuters.
Match is expected to release its 1Q earnings report on May 8.
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