Hello Group buys majority stake in Dutch dating app Inner Circle

Hello Group, the Nasdaq-listed company behind dating apps happn and Coffee Meets Bagel has acquired a majority stake in Amsterdam-based dating platform Inner Circle. The two companies announced the deal today but did not disclose the price or the size of the stake.

Founded in 2012, Inner Circle says it has nearly 9 million members, with most of its community based in Europe and Latin America.

Unlike apps that let users join immediately, Inner Circle reviews applications before accepting new members. It then matches people based on shared interests, lifestyles and values.

The company has built its identity around an alternative to swipe-based dating. Alongside its matching service, it offers interest-based groups called Circles and organises events where members can meet in person.

Despite the acquisition, Inner Circle will retain its name and continue operating from Amsterdam. Its members’ personal data will also remain subject to the EU’s General Data Protection Regulation (GDPR).

Hello Group will support the platform with its technology, product development and operational teams as it looks to expand into new markets.

The company said the acquisition fits its strategy of building a portfolio of apps for different ways of meeting and socialising.

Besides happn and Coffee Meets Bagel, Hello Group owns Chinese social and dating platforms Momo and tantan, as well as Soulchill.

“We believe the next phase of growth in online dating will be driven by platforms that understand their communities deeply,” said Tang Yan, Hello Group’s chairman and chief executive.

Tang sees opportunities to bring Inner Circle to more countries by combining its established brand with Hello Group’s experience in growing dating and social apps.

For Inner Circle, the deal offers a way to expand without abandoning the approach on which it was founded.

“Becoming part of Hello Group marks an exciting new chapter,” said co-founder and chief executive David Vermeulen.

He said the company had set out to challenge the idea that online dating had to revolve around endless swiping. With Hello Group’s backing, it hopes to take that model to more people and cities around the world.