Ashley Madison makes millions on infidelity—No fundraising, no IPO plans

Ashley Madison makes millions on infidelity—No fundraising, no IPO plans

“Our biggest competition is not another dating app. It’s the office space—that’s traditionally where affairs have always occurred,” Paul Keable, Chief Strategy Officer, Ashley Madison, tells me, which comes as a slight shock given how much the online dating scene has evolved since the Canada-based married dating service was first launched in 2002.

While most dating platforms focus on exposing you to as many people as possible, Ashley Madison’s discretion makes it unique. “Our focus is on where traditional dating apps like Tinder, Bumble, or even Match expose you to as many people as possible,” Paul explained. “They put your profile out to millions of others, trying to attract a partner across a broader spectrum. In contrast, Ashley Madison is about finding a very specific need to be met. Our users are looking for something very different—a discreet affair or an extramarital connection, not a serious long-term relationship.”

Paul described how Ashley Madison’s technology empowers its members with control over their experiences. “Discretion is key,” he said. “We give our members control over who sees their images, how they view them, and even the ability to retract those images when they want. There’s a whole host of technologies embedded into the system to give particularly women control over their experience.”

This approach seems to have paid off. Despite a highly publicised data breach in 2015 that compromised the personal information of millions of members, Ashley Madison has not only survived but thrived. “After the breach, we saw an influx of new users because suddenly the world was paying attention to us in an unprecedented way,” Keable added. “For millions of people who hadn’t heard of us before, we suddenly became a solution to a problem they didn’t know they could fix. Our revenues were up double-digit percentage points.”

For those unversed, the breach, attributed to a group called The Impact Team, exposed the identities, real names, addresses, and sexual preferences of over 37 million users, significantly threatening the privacy and safety of its members. The hackers demanded that Ashley Madison shut down its operations or release its user database for free, but the company refused. This incident is documented in detail by the Netflix documentary “Ashley Madison: Sex, Lies & Scandal”. Despite this, Ashley Madison has never needed to raise funds and has been profitable since its inception. Today, it operates in over 45 countries and is on track to hit 90 million members by the end of 2024 with more than 300,000 people joining monthly.

So, how did Ashley Madison revive its image after a massive cyber attack like that and what is it doing to protect its growing userbase?

“Millions have been spent on security, millions have been spent on infrastructure to re-establish a different foundation for the company going forward,” Keable explains. “We asked, ‘What do we need to do to rebuild trust with our members and future members?’ A big part of that was reimagining our approach to security and privacy. Where in the past we had a team dedicated to security, now that focus has expanded. We have a Chief Privacy Officer, but more importantly, security and privacy are now embedded in our culture. It’s everyone’s job,” Keable reassures.

Additionally, the platform is also leveraging artificial intelligence and machine learning to enhance security, which according to Keable can detect about 80% of fraudulent accounts in under eight seconds. The platform is also currently testing selfie and government ID verification, handled by a third-party authenticator. The conversations that happen on the platform are also encrypted. “In addition to this foundational layer of encryption, we implement further protective measures for sensitive information that is not publicly accessible, such as email addresses. This involves database-level encryption techniques that add an extra barrier against potential data breaches.”

India ranks eighth on Ashley Madison’s top countries

Ashley Madison was already making waves in India back in 2013 with its bold tagline, “Your parents arranged your marriage, now let us arrange your affair.” Now, Keable explains the brand’s return to the Indian market with a fresh strategy. “India ranks as the eighth-highest country for Ashley Madison sign-ups this year. That’s without any marketing activities—just word-of-mouth. Clearly, the brand has resonance here.”

According to the company, there are currently over 1.4 million users in India with the average age being 27 for women and 28 for men. There is also an increasing trend towards disclosed non-monogamy. “Some users choose our site with their partner’s knowledge but still value discretion due to India’s conservative culture,” he added. Globally, 27% of Ashley Madison’s membership is in the disclosed non-monogamy group, which Keable says is a big shift from six years ago.

With expectations from India’s Gen Z market, Keable notes, “Gen Z is fascinating. Reports show they’re having less sex than previous generations but are more open to alternative sexual preferences. They want good, fulfilling experiences but without public scrutiny, they’ve grown up within a digital age. Ashley Madison offers them a space to explore discreetly, which we think will resonate, especially given India’s younger demographic and conservative culture.”

As Ashley Madison continues to expand, both globally and in new markets like India, it remains committed to its core mission of providing a safe, private space for its members to explore their desires.

“He’s Got No Clue”: Virat Kohli Breathes Fire, Stump Mic Catches India Star’s Brutal Sledging. Watch Previous post “He’s Got No Clue”: Virat Kohli Breathes Fire, Stump Mic Catches India Star’s Brutal Sledging. Watch
Pam Bondi’s lobbying past will create an ethics morass at DOJ Next post Pam Bondi’s lobbying past will create an ethics morass at DOJ

Leave a Reply

Your email address will not be published. Required fields are marked *