Grindr is moving beyond dating with a $250 million acquisition of PurposeMed, the telehealth company that operates the Freddie platform. The deal will let Grindr integrate healthcare services into its app, allowing users to learn about PrEP, review coverage, connect with clinicians, arrange testing, and manage refills without leaving the platform.
PurposeMed, founded in Canada in 2020, expanded into the U.S. in 2024 and now serves patients in all 50 states and Washington, D.C. Grindr says the company has served more than 55,000 patients across the U.S. and Canada. Grindr estimates that about 400,000 U.S. users currently indicate on their profiles that they take PrEP, while more than two million additional U.S. users could benefit from the medication.
CEO George Arison said the acquisition is part of the company's broader plan to become a platform company with multiple lines of business. He said the deal should be immediately accretive to Grindr's EBITDA dollars, but acknowledged that investments to build out the U.S. operation will initially pressure margins. He expects margins to improve with scale and eventually approach the more than 40% margins of its core business.
The move comes as investors look for Grindr to diversify beyond its core business. Morgan Stanley upgraded the stock in July, citing strong network effects, high engagement, and significant profitability. Arison said he hopes the healthcare push could double the current 10% annual growth in PrEP use, potentially putting about 300,000 more people on PrEP over the next five years.