[Composite image: DI Studio; Sources: Match Group, Sniffies]

Dallas-based Match Group is investing $100 million in Sniffies, a map-based platform for non-heterosexual men, taking a significant minority stake with the option to acquire the rest of the company.

The deal was announced Monday by Match Group (Nasdaq: MTCH), parent of Tinder, Hinge, Match, and OkCupid. The company has used a similar approach with other investments. In 2017, Match took an early minority position in Hinge, followed by an acquisition in late 2018,

The investment in Sniffies “underscores [a] strong conviction in one of the category’s largest segments,”  the company said in the news release out of Los Angeles, where Match has an executive hub.

A 20-million-messages-a-day platform

Sniffies has grown to an estimated 3 million monthly active users globally, with more than 20 million messages sent daily, according to Match. Its real-time, map-based experience “offers a more dynamic way for men to discover and connect with other men, reflecting evolving user behavior and a growing demand for more flexible, low-pressure interactions,” the company said.

The platform GBTQ men will continue to operate independently and remain founder-led, with Match Group supporting its growth and vision.

“From the first time I met the Sniffies team a year ago, it was clear they had a deep understanding of their users and a strong point of view on how its community actually connects—in a way that’s honest and unapologetic,” Spencer Rascoff, CEO of Match Group, said in the announcement.

Rascoff added that there is “clear and growing demand in this space” and that Sniffies feels “genuinely different and authentic to its audience.”

Blake Gallagher, founder and CEO of Sniffies, said the investment “allows us to keep building for our community while staying true to what makes Sniffies unique.” Gallagher said Match Group’s support will help the company “move faster on improving the product and expanding our network, while continuing to invest in trust and safety.” 

A Hinge-style bet in a shifting dating market

The investment comes as the company “has been attempting a turnaround in recent times, reworking core features across its lineup to reduce negative experiences and focus on user experience as younger users grow more selective with dating apps,” according to Reuters, whose headline on the deal called Sniffies a “Grindr rival.”

Dating apps face “intensifying competition, with many now betting that AI-powered features can help them adapt to shifting user preferences and improve matchmaking,” Reuters reported.

In LGBTQ+ dating apps last year, Grindr “ended talks on a $3.46 billion take-private deal by its two largest shareholders, due to uncertainty over financing,” according to Reuters.

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