Dating app Bumble has been taken over by a technology investment firm for $1.3bn (£980m) with plans to “take it into the next era” of dating “in a world transformed by AI”.

Ithaca Holdings is buying the business and its directors Ravi Gupta and John Hegeman will become co-chief executives of the dating app which was set up by Whitney Wolfe Herd and differentiated itself by having a “women-first” chat rule.

The loss-making business ditched the rule in August this year.

Wolfe Herd, current chief executive of Bumble who co-founded dating app giant Tinder, said she would remain “actively involved with Bumble”.

Ithaca Holdings said it wants “to apply frontier technology to renew and accelerate businesses that enrich people’s lives and create lasting value in a world transformed by AI”.

While it is unclear what Wolfe Herd’s role at the dating app will be, she said she will work closely with Gupta and Hegeman.

Bumble’s share price soared on Monday following following reports it was in advanced takeover talks, and had risen by more than 50% as the deal was confirmed.

The jump in Bumble’s share price pushed its company valuation to over $580m but that is still far below a peak of more than $14bn it reached after it floated the business on the Nasdaq stock index in 2021.

Since becoming a public company, it has reported a pre-tax profit only once.

Bumble was launched in 2014 by Wolfe Herd who built the brand around a distinctive feature that only allowed women to initiate conversations with matches.

It recently abandoned that rule, prompting debate among users over whether the app had lost what set it apart from rivals.

“Today, our community is asking for more flexibility, less pressure, and more opportunities to create real, meaningful connections and that is what this new experience provides,” Wolfe Herd said in August.

Dating apps like Bumble have come under pressure in recent years as some younger users have grown disillusioned with browsing for dates.

Bumble said in 2025 that it would cut almost a third of its workforce as the industry grappled with what Wolfe Herd described as an “inflection point” in online dating.

Investments in other dating companies have also soured as apps have struggled to convince users to pay for their services.

Match Group – which owns apps including Tinder, OkCupid and Hinge – has also seen its shares fall sharply from their peak in 2021.

According a report by media watchdog Ofcom in 2025, adults in the UK were spending less time on dating apps compared to three years earlier.

Some single people are instead turning to board game get-togethers, book clubs and other group activities in the hope of finding a partner.