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Andrey Andreev, the Russian-born billionaire behind courting apps together with Bumble and Badoo, is planning a swift return to the cellular web enterprise after promoting out to non-public fairness in one of many UK’s largest-ever know-how offers.
Blackstone’s all-cash acquisition of Mr Andreev’s stake in MagicLab, the London-based mum or dad firm of Badoo, Bumble, Chappy and Lumen, closed this week, valuing the group at round $3bn.
“It has given me the liberty to create one thing new,” Mr Andreev stated. “It is given me potential, money and time . . . I don’t need to retire.”
Whereas Mr Andreev didn’t disclose particular particulars of his subsequent enterprise, he stated that one thought is targeted on charity and donations — one thing he desires make “extra accessible . . . the identical as what I did with courting”.
MagicLab is now led by Bumble founder Whitney Wolfe Herd, who had beforehand co-founded rival courting app Tinder.
The deal’s closure follows the publication earlier this week of a authorized investigation into allegations of harassment and sexism at MagicLab, following a damning report into the corporate’s working surroundings by Forbes.
The six-month probe by regulation agency Doyle Clayton into 24 separate incidents discovered that there was “ample proof to uphold three of the minor allegations and to partially uphold three additional minor allegations”.
“Following a protracted and detailed evaluation, we discovered there to be a scarcity of credible proof in relation to many of the allegations, significantly the extra severe ones,” stated Doyle Clayton, which was employed by MagicLab final summer season. “It was concluded that the central allegation made by the Forbes article — that there’s presently a misogynistic ambiance on the London workplace — is wrong.”
The regulation agency really helpful a collection of adjustments, together with obligatory variety and inclusion coaching for all workers, “enforcement of acceptable worker conduct at firm events”, and an nameless “whistleblowing hotline” for employees.
Chatting with the Monetary Occasions in Mayfair this week, Mr Andreev stated the Forbes report was a “massive stunning second for all of us”.
“Now after we obtained the outcomes of this [legal review], I really feel way more comfy leaving the enterprise,” he stated. That the report was launched and the deal closed in the identical week was “coincidental”, he stated.
Born in Moscow however primarily based in London for a few years, Mr Andreev based Badoo in 2006 as a hybrid of social networking and courting. It pioneered the “freemium” enterprise mannequin that fees only a small portion of its viewers for non-compulsory extras, comparable to searching and communications options. Badoo now reaches greater than 425m customers globally, in accordance with figures launched final yr.
In 2014, Mr Andreev teamed up with Ms Wolfe Herd to launch Bumble — a courting app that lets girls make the primary transfer — after her break up from Tinder. Mr Andreev created MagicLab to share staffing, sources and know-how between the courting apps, which additionally embrace Chappy, a homosexual courting app, and Lumen, which is aimed on the over-50s. “The enterprise is rising like loopy,” Mr Andreev stated.
Magic Lab had explored an preliminary public providing earlier than agreeing a take care of Blackstone. Talks with the personal fairness agency started “plenty of months” earlier than the Forbes report was printed, Mr Andreev stated. “I didn’t promote the enterprise due to this text.”
Now, for the primary time in nearly 15 years, a non-compete settlement with Magic Lab signifies that Mr Andreev will now not be within the courting enterprise. However somewhat than observe many former start-up founders into enterprise investing, Mr Andreev is insistent that he desires to stay a “builder”.
“There are such a lot of gifted individuals in search of potential assist and I could be a nice associate to those guys,” he stated. “I don’t need to name this ‘VC’ or ‘angel funding’. I’m speaking about me, as a helper to individuals with nice concepts.”
Twenty former Magic Lab workers have joined him in a brand new enterprise, primarily based in Mayfair, that may retain Mr Andreev’s longstanding concentrate on cellular apps and social networking. He plans to rent extra quickly.
“I’m very lively, I’ve numerous power. I need to contain myself in not only one factor however many issues,” he stated. “By promoting MagicLab, I’ve plenty of gas to run my new venture.”
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