Silicon Valley woke up to the news of the dating app Bumble making its public debut. Bumble is a dating app which caters to women and is led by a woman named Whitney Wolfe Herd. As soon as Bumble made its debut on the New York Stock Exchange (NSE,) shares of the dating app soared by as much as 67%. This led to the net worth ofWolfe Herd, the Chief Executive Officer of Bumble, to be valued at $1.5 billion, thereby making her a self made billionaire at just the age of 31. Bumble plans to use the $2.2 billion proceeds from the IPO to pay off debt, fund international growth, and pursue acquisitions.
However, the story of Wolfe Herd and Bumble is one of mettle, grit and inspiration. The journey of the unicorn is nothing short of a story. Keep reading to find out how Wolfe Herd founded a company to rival Tinder.
Wolfe Herd began her journey as a co founder of Tinder, the world’s biggest dating app. Whitney Wolfe Herd was Vice President of Marketing, at Tinder when she began her journey. However, Wolfe Herd alleged she was subjected to sexual harassment by her colleagues at Tinder and that she was stripped of her co founder tag because having a girl with that tag makes the company seems like a joke. Wolfe Herd walked out of Tinder and filed a lawsuit against Match Group, the parent company of Tinder. The lawsuit was settled out of the court for $ 1 million.
It was her experiences at Tinder which led Wolfe Herd to start Bumble, a dating app which lets women make the first move. Women can swipe across profiles of men and choose to begin a conversation after a match. At no point in this process could a man make the first move thereby putting women in firm control about the conversation as well as offering them a safety net.
After taking some time off following the nasty lawsuit with Tinder, Wolfe Herd received an email from a Russian named Andrey Andreev, who is based in London and founded Badoo, another dating app which was the world’s largest dating app at that time (2014.) Andreev was impressed with Wolfe Herd’s commitment at Tinder and said he would help her with her new startup and ended up investing $ 10 million in her idea. Andrey Andreev would own 79% stake while Wolfe Herd owns 20% and the title of CEO and at the same time be able to tap into the infrastructure and resources of Badoo. Herd and Andreev brought in former Tinder executives Chris Gulczynski and Sarah Mick, to design the new app’s back end and user interface. Both Mick and Gulczynski share the remaining 1% stake between themselves.
ALSO READ: Tinder: The Unique Story Behind The Swipes
During a cocktail event, Andrey and Wolfe Herd were discussing a scenario where women could make the first move and get the phone number of a guy after a match. However, the match would disappear after 24 hours if neither of the parties made a move. This became the core of Bumble and the secret sauce for its success.
By January 2015, about a month after launch, Bumble had about 100,000 downloads. By the end of 2017, two years after launching, Bumble had amassed more than 22 million users. This growth was noticed by Tinder which then made a buyout offer for $ 450 million. Wolfe Herd rejected the offer immediately. By July 2020, Bumble announced it had reached 100 million users. Today, Bumble is available in 150 countries and is expanding into new areas like business networking. In 2019, revenue jumped more than 35% and it turned a profit of $ 68.6 million. More than 10% of Bumble’s users pay $9.99 for a monthly subscription to access perks like extra time to decide whether a suitor merits a message. At Tinder, just about 5% of users pay for a similar service.
Today Bumble is the second largest dating app in the world and only continues to grow with its closest competitor being Tinder.
Elon Musk Tweets About Bitcoin Bull Run And Loses $ 15 Billion
Since the last one year, Bitcoin, a crypto currency has constantly been in the news for its unprecedented bull run. A cryptocurrency is a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in a form of computerized database using strong cryptography. This is done in order to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership. Cryptocurrency does not exist in paper or physical form and is not issued by a central authority like banks, which is why it is fast gaining popularity among the masses.
Bitcoin was in a bull run when news about Elon Musk owned Tesla invested $ 1.5 billion in Bitcoin and also said it would begin accepting payments for its vehicles in Bitcoin. Tesla’s latest investment saw Bitcoin surging ahead to an all time high value of $ 47,000 per coin on the very day of the investment. Since the day of Tesla’s investment, Bitcoin crossed the $ 50,000 mark.
However, just two weeks since the Tesla investment, Elon Musk tweeted about how the prices of Bitcoin and another crypto currency Ethereum seemed high. Since then Bitcoin prices have begun to fall and Tesla Inc. shares slid 8.6 % on February 23rd, wiping $ 15.2 billion from Elon Musk’s net worth. Following the reduction is his net worth, Elon Musk dropped to second place on the Bloomberg Billionaires Index of the world’s 500 richest people with a net worth $ 183.4 billion. Amazon founder Jeff Bezos overtook Musk to take the title of the world’s richest man.
That said, BTC & ETH do seem high lol
— Elon Musk (@elonmusk) February 20, 2021
Bitcoin is the first cryptocurrency to be created and is the oldest among the tens of other currencies which exist currently. Bitcoin is also the preferred choice of cryptocurrency for retail investors and its popularity is drawing multiple venture capitalists and entrepreneurs to invest in the cryptocurrency. However, crypto currency enthusiasts are hopeful the bearish outlook is only temporary and Bitcoin would bounce back.
Daily Basket Creates BBisabully Over Being Sued By Big Basket Over Usage Of Basket
Big Basket is India’s first online shopping platform which revolutionised the way people bought groceries. It is easy to spot Big Basket’s vehicles and delivery agents all dressed in bright green colours. The ability to order quality vegetables and groceries and have them delivered at the doorstep was one of the main reasons why it shot to fame. Since then online grocery shopping has become commonplace with the arrival of Dunzo, Amazon, Flipkart and many other small scale businesses.
Big Basket found itself in a bit of news which it would have liked to avoid. News about a small two man bootstrapped startup named Daily Basket being sent a cease and desist order by Big Basket began doing the rounds on social media platforms. The whole issue began when Big Basket said Daily Basket was copying their app, user interface and their name. Big Basket claimed they came across a filing named Daily Basket when checking the trademark registry and felt it was a combination of the registered trademarks bigbasket and bbdaily.
The bootstrapped startup Daily Basket has no means to mount a legal battle against the six year old unicorn Big Basket. So, Ramesh Vel, one of the founders of Daily Basket, began a website named BBisabully to call out Big Basket’ bullying. The website gives a brief overview of Daily Basket which says they are an online grocery delivery platform based only in Coimbatore. The Big Basket notice contains the following points according to Daily Basket:
- Stop using the domain name dailybasket.com.
- Discontinue the mobile apps.
- Stop all the operations immediately.
- Transfer our domain name dailybasket.com (Which is premium btw, and costs a little fortune) to them immediately with free of cost.
- Pay their legal team of 2 lakh rupees to cover the legal notice.
- Do not use a similar domain containing “basket” as a prominent feature ever again.
The website BBisabully also lists out reasons and visual evidence as to why Daily Basket is completely different from Big Basket and how the former is not copying the latter. There are many brands in the market which have the word ‘basket’ in their names like Milk Basket and Nature’s Basket by Godrej. If going by the logic of Big Basket that Daily Basket copied their name, then Nature’s Basket predates Big Basket by six years meaning Nature’s Basket could unleash the same claims on Big Basket.
Bike Rental Startup Bounce Goes For A Second Round Of Layoffs Amidst Operations Scale Down
Bounce is a bike rental startup which was quite the rage amongst the IT industry crowd as their bike rentals made daily office commute quite easy. Owning a four wheeler in a metropolitan city is quite a bread ache owning to endless traffic snarls. This was where Bounce fit in perfectly as it offered a faster and hassle free commute. All a person had to do was open the Bounce app, book the nearest available bike and drop it off at their desired location. The app was easy to use, bikes were in great condition and the prices were extremely affordable and attractive.
However, Bounce was affected due to the COVID-19 pandemic both directly and indirectly. When the COVID-19 pandemic arrived on the Indian shores, the Central Government announced a strict nationwide lockdown which was extended till almost 6 months. The lockdown meant the public were working from home as offices were closed. This meant there were no commuters and meant there were no takers for Bounce. As demand continued to plummet, Bounce laid off 130 workers from its 600 strong workforce in June 2020. The total number of daily rides after the lifting of the lockwon is around 20,000, compared to around 130,000-140,000 a day prior to the lockdown in March 2020.
As the lockdown was lifted, Bounce hoped to see its demand increase but with multiple companies realising the higher productivity levels of remote work are not in a hurry to recall their employees to offices anytime soon. Therefore demand levels continued to be low and this meant a second round of layoffs at Bounce. In the most recent layoffs, around 200 employees have been laid off along with receiving a severance package of three months salary and medical insurance for one year.
According to a popular news daily, Bounce is working with the employees who were laid off to forward their resumes and get them placed in other organisations. Moreover, with the failing demand Bounce had sold off all their petrol bikes and shuttered their operations in all major cities except Bengaluru. Bounce is now planning to launch a fleet of electric vehicles as the operating costs are cheaper compared to fuel based vehicles. This includes an electric scooter developed in house which will become available on their platform. A top executive at Bounce said the company still has around $ 70 million in cash from its previous fundraise and would utilise that capital to grow the EV business.
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