Coffee Meets Bagel (CMB), a dating app founded by sisters Dawoon, Arum, and Soo Kang, gained widespread attention after rejecting a $30 million buyout offer from billionaire investor Mark Cuban on Shark Tank. Today, nearly a decade later, their decision has proven to be a wise one. The company has grown significantly, boasting a net worth of approximately $150 million with an annual revenue of $36 million.
Post-Shark Tank Growth and Challenges
Following their Shark Tank appearance, Coffee Meets Bagel attracted new investors and secured additional funding. Over five investment rounds, the company raised more than $23.2 million, with major investments from Atami Capital and DCM Ventures.
However, the journey wasn’t without hurdles. In February 2019, a cyberattack compromised the data of over 6.1 million users, presenting a major setback. The company responded by implementing stronger security measures and introducing a virtual speed-dating feature the following year, helping it recover from the crisis.
Despite these efforts, CMB has faced challenges in maintaining user growth within the U.S., competing against dominant players like Hinge, Tinder, and Bumble. Currently, the app ranks among the top 15-20 most popular dating apps in America. Interestingly, according to a YouGov survey, Coffee Meets Bagel ranks as the second most popular dating app in Singapore, demonstrating its international appeal. With an estimated user base of 10 million, the app continues to sustain a loyal audience.
As per LinkedIn, CMB employs 85 full-time staff, all working remotely. While the company’s revenue growth has not matched initial projections, it continues to generate approximately $36 million annually. However, market analysts predict that its valuation may decline in the future due to increasing competition.
Meet the Founders
The Kang sisters—Dawoon, Arum, and Soo—immigrated to the U.S. from Korea as teenagers and pursued impressive academic careers. Soo attended Harvard University, Arum graduated from Stanford, and Dawoon earned her degree from Parsons School of Design.
Their inspiration for Coffee Meets Bagel came from their personal frustrations with online dating. They believed there was a more effective way to match people for meaningful relationships rather than casual encounters. This insight led them to develop a unique dating platform that would offer curated matches instead of an overwhelming number of choices.
The Birth of Coffee Meets Bagel
To turn their vision into reality, the sisters relocated to San Francisco, where they could access the best technical resources. Within a year, Coffee Meets Bagel was fully developed and ready for launch.
With an initial investment of $600,000 from Lightbank and a co-founder of Match.com, the app officially debuted in 2012. What set CMB apart was its innovative approach to matchmaking—using Facebook data and machine learning algorithms to provide users with a limited number of daily matches at noon. This structure encouraged meaningful interactions rather than endless swiping.
The app’s early success saw rapid user growth and increased revenue. However, like many startups, Coffee Meets Bagel struggled with cash flow and was reportedly losing up to a million dollars per year. To sustain the business, the founders sought investment opportunities.
The Shark Tank Pitch
In 2015, the Kang sisters appeared on Season 6 of Shark Tank, seeking $500,000 for a 5% equity stake in Coffee Meets Bagel. Their valuation at the time stood at $10 million.
The pitch led to one of the most intense negotiations in the show’s history. While most of the Sharks found the investment too risky, Mark Cuban saw potential in CMB’s unique business model and offered to buy the entire company for $30 million—the largest cash offer ever made on Shark Tank.
Despite the tempting proposal, the Kang sisters turned it down. They believed Coffee Meets Bagel had the potential to become a serious competitor to Match.com, which was generating $800 million in annual revenue at the time.
Where Is Coffee Meets Bagel Today?
Today, Coffee Meets Bagel is valued at approximately $150 million. While it hasn’t reached the level of Match Group’s success, it has carved out a niche for users looking for serious relationships. The app has also expanded internationally and remains particularly strong in markets like Singapore.
The company’s revenue model relies on a combination of subscription plans and premium features. Despite facing stiff competition from larger platforms, Coffee Meets Bagel continues to differentiate itself with its quality-over-quantity approach.
