Toronto-based dating app Clover has secured C$12 million in debt and equity financing to support the company’s growth. The venture debt funding was provided by Espresso Capital, while the structured equity investment came from an unidentified existing backer.
TORONTO, Feb. 3, 2021 /CNW/ – Clover, the top-rated dating app, announced a growth capital financing of $12 million consisting of growth debt from Espresso Capital, and a structured equity investment from an existing investor. Based in Toronto, Espresso provides innovative venture debt and growth financing solutions to leading companies in technology, healthcare, internet & digital media, and other high-growth verticals.
The company plans to use the new funds to accelerate its rapid growth. In fiscal 2020, Clover generated $19 million in revenue from 900,000 paid subscriptions, a 67 percent CAGR over the past three years. Clover’s simplicity and versatility have attracted 9 million users in the highly desirable Gen Z (50%) and millennial (42%) demographics. Ninety percent of the app’s users are concentrated in major US markets.
Clover recognizes that each user is unique and that dating preferences vary. The app offers a wide range of settings, filters, messaging, and video options. Users are free to choose and find their own comfort zones. LIVE, the new video streaming service, allows users to watch live streams, start their own stream, chat, and send and receive gifts.
“It is a whole new way of engaging in a dating environment,” says Isaac Raichyk, CEO of Clover. “With loneliness reaching new highs, young singles need our service more than ever.”
According to Cigna, 71 percent of millennials and 79 percent of Gen Z, reported feeling lonely in 2020, a significant increase from previous generations.
“Over the past five years Clover has achieved impressive and highly efficient growth,” says Mark Gilbert, Director at Espresso. “We are excited to provide the capital to fuel Clover’s next growth phase.”
Pagemill Partners, the technology M&A division of Duff & Phelps, served as the exclusive financial advisor to Clover.
Founded in 2014, Clover Inc, a privately held company, is a leading mobile dating platform dedicated to helping the next generation of singles find meaningful connections. The Clover Dating App attracts millions of singles across the U.S. Clover’s highly personalized dating experience helps users find compatible matches faster, with minimal effort. For more information visit www.clover.co or download the app available on iOS or Android.
About Espresso Capital
Espresso empowers companies with innovative venture debt solutions. Since 2009, we’ve helped more than 275 technology and healthcare companies, and their investors, accelerate growth, extend runway, and increase strategic flexibility with non-dilutive capital. Learn more at www.espressocapital.com.