Grindr, the LGBTQ+ dating platform with 11 million monthly active users, is testing a premium AI matching tier called Edge at $80-200 per week. That's roughly 16-80 times the weekly cost of its existing XTRA subscription ($10-50/month), which already offers ad-free access, 600 profile views, and read receipts.
The pricing represents a significant bet on AI personalization value. Existing users are already seeking workarounds: recent videos show interest in modified apps and trial exploits to access premium features without paying, suggesting price sensitivity in the user base.
The timing matters. Grindr went public via SPAC merger in 2022 with a $2.1B enterprise valuation. The company is projecting $698.7M revenue and $166M earnings by 2028, up from a current $55.5M loss (22% CAGR). To hit those numbers, management is diversifying beyond the core app.
In 2025, Grindr launched four new direct-to-consumer businesses, including Woodwork, an ED medication brand. Each venture is projected to generate $15-30M, totaling up to $120M by 2028. The strategy emphasizes subscription revenue and what the company calls "AI governance."
The challenge is sustainability. Premium pricing works when users see clear value and when competitors don't offer similar features at lower prices. Dating apps have historically struggled with churn, particularly at higher price points. Grindr's own metrics show varying retention across subscription tiers.
Enterprise tech leaders should note the broader pattern: consumer app companies using AI features to justify premium pricing while managing rising compliance and operating costs. Grindr's experience will signal whether users will pay materially more for algorithmic matching, or whether free and mid-tier options remain sufficient.
The company hasn't disclosed Edge conversion rates or whether the tier will roll out beyond testing. Given the price gap, watch subscriber churn data in upcoming earnings calls.