With an overwhelming number of dating apps available today, it can be difficult to find one that truly prioritizes meaningful connections over endless swiping. That’s where Coffee Meets Bagel (CMB) stands out. Launched in 2011 by three sisters—Dawoon, Arum, and Soo Kang, this dating platform takes a unique approach to online matchmaking. Instead of prioritizing quantity, the app matches users based on interests, values, and social circles, making it one of the most relationship-focused dating apps available today.
Since its debut, Coffee Meets Bagel’s net worth has grown to over $150 million, with a loyal user base and continued expansion in the online dating industry. From its Shark Tank appearance to its innovative features, let’s dive into the story behind CMB’s success.
The Birth of Coffee Meets Bagel
The Kang sisters, originally from South Korea, moved to the United States to pursue higher education. After realizing the limitations of traditional dating apps, they decided to create a platform that focused on genuine connections rather than superficial swiping.
CMB launched in April 2011 with a soft launch in New York City, followed by expansions to Boston and San Francisco. The app’s main goal was to create a safe and curated dating experience, especially for women.
Funding and Shark Tank Experience
In September 2012, CMB secured $600,000 in seed funding, with investment from Lightbank and Match.com co-founder Peng T. Ong. This early funding allowed the app to refine its features and expand its user base.
In January 2015, Coffee Meets Bagel gained widespread recognition when the Kang sisters appeared on Shark Tank, pitching their company in hopes of securing a $500,000 investment in exchange for 5% equity. Although they did not strike a deal, their most notable moment came when Mark Cuban offered to buy the entire company for $30 million—an offer they refused. Today, their decision appears to have paid off, as CMB has grown into a $150 million business.
How Coffee Meets Bagel Works
Unlike Tinder or Bumble, which require users to swipe endlessly, CMB offers a curated selection of potential matches—called “Bagels“—each day. The app’s machine-learning algorithm selects these Bagels based on factors like interests, location, and social circles.
Key Features That Set CMB Apart
- Limited Daily Matches: Instead of swiping through hundreds of profiles, users receive a personalized list of Bagels every day.
- Women-Initiated Conversations: To create a safer and more engaging experience, women can only initiate conversations with men who have already expressed interest.
- Conversation Time Limit: Chats expire after eight days, encouraging users to engage meaningfully instead of dragging conversations out.
- In-App Currency (“Beans”): Users can buy or earn “Beans” to unlock additional features, such as extended chats and more match visibility.
Revenue and Business Model
CMB’s business model is based on freemium services, where users can access basic features for free but pay for premium subscriptions or additional Beans. This model has contributed significantly to Coffee Meets Bagel’s $150 million valuation.
Main Revenue Streams:
- CMB Premium Subscription: Provides benefits such as seeing read receipts and additional match preferences.
- In-App Purchases: Users buy Beans to unlock special features.
- Ad Revenue: Though not a primary focus, limited in-app advertising generates additional income.
Challenges and Competition in the Dating App Market
Despite its success, Coffee Meets Bagel faces fierce competition from industry giants like Tinder, Bumble, and Hinge. However, its emphasis on quality over quantity continues to set it apart.
Challenges CMB Faces:
- Competing with Free Apps: Many dating apps, including Tinder, offer free unlimited swipes, which can be more appealing to casual users.
- User Retention: Because CMB is designed for meaningful connections, users may leave the app faster once they find a relationship.
- Scaling Internationally: Expanding to different markets with diverse dating cultures remains a challenge.
The Kang Sisters’ Vision for the Future
The Kang sisters continue to innovate and refine Coffee Meets Bagel. Their vision remains clear: to create a safe, high-quality dating experience that prioritizes authentic connections over casual encounters.
What’s Next for CMB?
- AI-Driven Matching: Enhancing their algorithm to offer even better matches.
- Expanding Internationally: Growing in markets outside the U.S.
- New Features: Adding video calls and interactive profiles.
