Eventually, such was their market that ruled the roost and became the top grossing application on the Apple i OS store.
Although they had over 0 million in sales in 2014, they were still losing money at an alarming rate and they needed to identify core issues that were threatening to derail the entire project.
As one of the most widely visited sites in the world relating to online dating scene, Zoosk has become increasingly popular and offers a chance for single ladies and gents to pick out a partner that best suits their needs, habits and requirements.
With apps like Tinder in the market, one would expect that others would stay well away from this circuit, but Zoosk has been carving a niche for itself since 2007 when it’s two co-founders Shayan Zadeh and Alex Mehr launched the company in December of that year, whilst initially studying in the Sharif University of Technology in Iran and later the duo continued to study together in the US at the University of Maryland.
As it turned out the company was spending too much on expansion and over hiring, which drained resources immensely and affected their profits significantly.
A major chunk of this was down to the startup philosophy that profits do not matter; a theory which makes it extremely difficult to survive in the long-run as a firm will not succeed if does not make money.
The company uses big data and algorithmic recommendations technology in order to help its users find relevant partners that they can use.
Since its inception, the firm experienced high growth and was in a strong position by 2014 but needed capital in order to secure growth on the market and scale their operations which were lacking severely at that point.
Zoosk lay off staff to cut costs and implemented a paid membership deal.
Zoosk primarily works as an application that client support for PC, i OS and Android devices.
Subsequently, they filed S-1 paperwork for their IPO in April and aimed to raise over 0 million in capital that would help they achieve their target.
Before offering their targeted amount, which was substantial to say the least, the firm had revenues of 8.2 million, a 63% increase over the previous year, in 2013 and had extremely impressive statistics that showed how much potential they held in an extremely competitive market that is dominated by the industry leaders and fuelled by consistent innovation; 27 million members, of which 650,000 were paying subscribers and had a growth rate of 44% year-over-year when it came to their membership.
A photo verification service was added to the platform in August, 2014 that was designed to prevent unwanted manipulation and ensure that all users present on the site were relevant, confirmed individuals whose identity and current look could be properly checked as such.