April 1, 2015
Consumer, Retail, E-commerce and Leisure
Equity financing for Tantan from Berteslmann Asia Investments
The Chinese Tinder
Beijing-based Tantan is a social flirting and dating app built by YAY Media Labs, a company that designs and develops social applications for the East Asian markets, primarily China.
Tantan is similar to popular Western matchmaking app Tinder, on which users browse the photos of other people in their area and swipe right or left depending on if they would like to chat with them or not.
Launched in September 2014, Tantan is free with no in-app purchases, and is available for both iOS and Android.
A booming market
China’s online dating scene has evolved rapidly over the past years with multiple companies jumping into the industry, including Momo, a location-based chat backed by e-commerce giant Alibaba that IPOed in late 2014.
Growing at a 40+% CAGR between 2010 and 2014, this nascent market has generated revenues RMB 2.3bn (USD 365m) in 2014.
Tantan has approximately 300,000 active daily users with the objective to get to 2 million within a year and 10-20 million annually thereafter, based on that there are many singles in their 20s but no platform for them to meet.
Raising capital to scale
In January 2015, Tantan raised a USD 5m Series A financing round led by Bertelsmann Asia Investments, an investment arm of Bertelsmann AG.
The flirting/dating app’s funding will be used to ramp up conversion of Tantan matches to real, offline conversations between users.
GCA Altium acted as sole advisor to Tantan.