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Hello Group (MOMO US) is a Chinese software developer focusing on dating apps. The company owns two major apps:
- Momo (陌陌): Originally a Tinder clone, known as a “hookup app”. Today, Momo has expanded its offering to include live streaming and social media features.
- Tantan (探探): A pure-play dating app focused on a younger demographic and that dominates online dating in China today.
The common denominator between these two apps is that they allow users to connect to potential partners in their immediate vicinity. The fact that they’re location-based services means that it’s easy for users to meet up in real life.
Momo has 109 million monthly active users, is more used in lower-tier cities, and has a tilt towards live-streaming services. Tantan is popular in tier 1 cities among the young demographic and women looking for a relationship.
China’s online dating market is still in its infancy, with only a small portion of singles using dating apps. China has roughly 300 million singles, and Momo and Tantan only have 9 and 3 million paying subscribers, respectively.
The period since 2019 has been tough for the company:
- First, revenues dropped after a government crackdown on live-streaming activities, specifically the introduction of real-name verification and caps on spending.
- Second, COVID-19 hurt the market for casual dating. Users were afraid of catching the virus, and there was no point in looking for new potential partners in your vicinity when staying at home, in the same spot, for three years.
- Third, China’s macro environment has been weak, and top spenders within the live-streaming segment have been cautious.
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