BlueCity, the operator of China’s largest LGBTQ dating app Blued, has accelerated efforts to acquire assets to broaden its services since its U.S. initial public offering (IPO) in July.
On Wednesday, the nine-year-old company announced an agreement to spend 240 million yuan ($36 million) to buy 100% equity interests in Finka, a gay social networking app in China for young adults, according to a company statement.
After the completion of the deal, which is expected to close by mid-December, Finka, which had more than 2.7 million registered users in 2019, will continue to operate as a separate app, the statement said.
The buyout comes three months after BlueCity announced the purchase of China’s popular lesbian dating platform LESDO in what it called a “significant milestone” in implementing its strategy to serve subgroups within the broader LGBTQ community.
When talking about the acquisition of Finka, BlueCity’s founder and CEO Ma Baoli said that the deal is part of the company’s broader plan to build “a portfolio of apps and services designed to help community members across geographies and demographics.”
Ma added that BlueCity will continue to enrich its services through both organic growth and potential M&A opportunities.
Irrespective of a successful listing on the Nasdaq, BlueCity has yet to turn a profit. The company suffered a net loss of 3.3 million yuan in the second quarter of 2020, but its revenue grew 32.2% year-on-year to 247.4 million yuan, according to its earnings report.
The company said that its Blued app, which makes money through membership, livestreaming and advertising services, had 458,000 paying users as of the end of June.
Contact reporter Ding Yi (firstname.lastname@example.org)