It’s complicated: Investors swipe on dating apps, but with caution
Online dating platforms in India have attracted $21 million in funding to date, said Tracxn
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Investors' relationship with online dating platforms has shifted from stable commitment to a 'situationship'--mirroring the preferences of GenZ (born between 1997 and 2021), who are now exploring alternative ways to connect digitally, from meme bonding to AI catfishing to music compatibility.
Yet, despite growing skepticism about the future of online dating, prominent investors such as Cred's Kunal Shah, Acko's Ruchi Deepak, Wow! Momo's Murali Krishnan remains optimistic about India's dating app ecosystem. Shah is an angel investor in Juleo app, while Krishan backed Flutrr earlier this year
According to a report by SNS Insider, the global dating app industry is projected to reach $15.56 billion by 2032, growing at a compound annual growth rate (CAGR) of 7%.
Adding celebrity power to the industry, filmmaker Karan Johar entered the matchmaking space this year with Elevn, a dating app that encourages women to take the lead in initiating meaningful connections.
Neha Singh, CEO and Co-founder of data platform Tracxn, exclusively told Storyboard18 that online dating platforms in India have attracted $21 million in funding to date. The sector peaked in 2015 with $7.98 million raised, followed by a notable decline in subsequent years.
Singh noted that the sector saw a modest resurgence since 2020, with incremental funding growth--reaching $3.22 million in 2024, a 14% increase from $2.83 million in 2023. However, investors' sentiments remain cautious, with only $899K secured in the first half of 2025. Johar's Elevn platform raised $899,329 from Beenext and Whiteboard Capital this year, bringing the app's total funding to $1.38 million.
Among the other notable Indian players trying to compete with global giants like Tinder and Bumble are TrulyMadly ($9.1 million raised to date), Juleo, ($4.3 million), and Fluttr ( $1.83 million), Tracxn mentioned.
Additionally, several other startups are entering the industry to align with GenZ's evolving preferences. For example, Small World and Let's Socialise focus on hosting offline meetups, while Schmooze appeals to memes lovers looking to connect through humour.
However, investors speaking to Storyboard18 on condition of anonymity said that while dating and community-based app appear promising on the surface, a few manage to replicate the success of Tinder or Bumble due to high user churn rates.
Dating platforms are heavily reliant on paid marketing and influencer-driven promotions to acquire users, and such strategies result in higher customer acquisition costs and massive capital burn.
"Customer acquisition costs are high because apps heavily depend on paid marketing and influencers to attract users, leading to expensive user replacement and capital burn, and an uncertain monetisation situation owing to a price-sensitive market like India," said Tracxn's founder. Singh added, "User loyalty and retention are low, with user engagement falling notably after a month, leading to increased spending towards re-acquiring users, further inflating the Custome acquisition cost".
According to one investor, the average customer acquisition cost in India ranges between Rs 100 and Rs 500, but only 1% of users convert to paying for premium features.
Moreover, global giants like Tinder, Bumble, and Hinge continue to dominate the market, making it difficult for local startups to differentiate or compete at scale.
As per Statista, Bumble spent $227 million on advertising in 2024, while Tinder's parent firm Match Group spent $546 million during the same period.
Indian dating platforms are not only facing fierce global competition and wary investors, but are also dealing with deeper structural issues.
According to Singh, challenges include low user retention, gender imbalance (85–90% male users), prevalence of fake profiles and bots, cultural stigma around casual dating, and low engagement beyond initial matches.
Despite these headwinds, Singh believes that India remains a market with big potential for online dating, owing to rising internet penetration, smartphone adoption, and a tech-savvy population.
