Online LGBTQ platform BlueCity announced Wednesday that it has acquired Finka, a dating app for gay men in China, in a 240-million-yuan deal. The transaction is scheduled to close before mid-December.
BlueCity announced it has entered into a definitive agreement with iRainbow Hong Kong Limited (Finka), all of its subsidiaries and other entities under the control of Finka, agreeing to acquire 100% equity interests in Finka for an aggregate consideration of 240 million yuan in cash.
Finka, a Chinese social networking mobile app targeting young gay men, helps users establish social contact and share their daily life through swiping and matching, private messages, posting moments and live streaming. Finka had over 2.7 million registered users in 2019, according to a report by Frost & Sullivan.
“We are excited about this strategic acquisition,” said BlueCity’s Founder and CEO Baoli Ma. “Finka complements our Blued app. Blued has a broad suite of services for the gay community, while Finka is focused mainly on relationships. We share the same commitment and have been devoted to providing great social experiences to our users through innovative product offerings.”
After the acquisition, Finka will continue to operate as a separate app backed by BlueCity’s financial and operational support, Ma said.
BlueCity is building a portfolio of apps and services designed to help LGBTQ community members across different regions and demographics, Ma said. “There is no ‘one size fits all’ dating/networking service, and we intend to continue to tailor our services to the specific needs of our community.”
“Blued and Finka each has unique features and strengths for their respective communities,” said the Founder and CEO of Finka Qiang Xiao. “This acquisition integrates a menu of options and create synergies that can better meet the needs of a wider demographic. We look forward to working with BlueCity’s talented team and building a better future together.”
BlueCity provides services to foster connections and enhance the wellbeing of the LGBTQ community. Mobile app Blued is the platform’s central hub, allowing users to connect, express themselves and access professional health-related and family planning consulting services. Blued is the largest online LGBTQ community in China, India, Korea, Thailand and Vietnam, according to the company, with 54 million registered users worldwide.
In addition, BlueCity pledged Tuesday to donate 1 million yuan ($152,000) to further carry out HIV education and control in the lead-up to World AIDS Day. The funds will be used to support non-profit HIV prevention organizations in the LGBTQ community.
BlueCity founded the Danlan Public Interest Fund in 2008 to integrate online and offline HIV prevention, and launched the Blued app in 2012, furthering its HIV prevention efforts.
Partnered with communities across China, Danlan Public Interest has amassed a network comprising nearly 7,000 testing locations across the country, which users can check on Blued. Users can also use the app to make appointments directly with 224 testing centers in 32 Chinese cities.
Danlan Public Interest has also established four HIV testing centers in collaboration with the Center for Disease Control and Prevention in Beijing, offering some 16,376 free HIV tests during 2018 and 2019.