Case Type - Market Sizing 
 
 
 
 
 
  

Case : Estimate the Online dating market size of India (Medium difficulty) 
 
 
 
1.1 Preliminary Questions 
 
Which metric should be used for the market size? Either in terms of No of Users or the Revenue? 
 
A. The metric should be Total revenue per year. 
 
Do we also need to include wedding websites in the Online dating platforms? 
 
A. No, You can consider we are talking about only dating websites here in the given. 
 
What do you mean by market size? Is it simply revenue from users? Or should we also consider other forms of 
revenue? 
 
A. Yes, simply consider revenue from users. There is no need to look at other revenues from ads, social 
commerce marketing etc. 
 
 
 
 
1.2 Overall Strategy 
 
The overall strategy would be to estimate the market size of the Online dating in India first using appropriate 
proxies and understand the revenue generated per user to estimate the total revenue. 
 
 
Problem Structuring - Equations 
 
Online Dating Market Size​ = ​# of unique paying users ​x ​Amount spent per user per year 
 
The factors for determining the above two parameters are as follows: 
 
# of unique paying users ​ =​ ​Total # of unique users of online dating ​x ​% who become paying users 
Total # of unique users of online dating = # of single people in dating age ​x ​% using online dating 
# of single people in dating age = Population of India ​x ​% dating age ​x ​% single 
 

Amount spent per user per year = ​Amount spent per App/Website per year ​x ​# of avg paid App/Website per user 
Amount spent per App/Website per year = Price per month ​x ​Avg Months per year subscription used 
 
 
 

1.3 Assumptions 
 
Avg months per year subscribed​ : The value assumed is 8 months, accommodating the discontinuity is using a 
monthly, 3 months or an yearly subscription plan. 
 
% who become paying customers​ ​: This number has been taken equal to 10% keeping in consideration the 
freemium version also available for most of the applications 
 
# of avg paid App/Website per user​ : The number of paid App/Website per user has been taken to be 1.2 
1.2 = 80% x 1 Paid App + 20% x 2 Paid Apps 
 
 
Dating age : 18 to 30 yrs (25%) 
% male singles in Dating age = 60% ; % female singles in Dating age = 40% 
% single males using online dating = 40% ; % single females using online dating = 25% 
 
% penetration of online Applications = 50% of 30% 
 
Assuming only the Urban Middle and Upper Class section caps the market penetration of Online dating Apps. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.4 Calculations 
 

 
 
Market size of the Online Dating​ ​= Approx ​Rs 367 Crores 
 
 
1.5 Sanity Check 
 
We can do a very simple sanity check by dividing the number of online dating users by the population in the age 
group 18 to 30 yrs in Urban Upper and Middle Class, who are the major users of this platform. 
 
No of users of online dating : Population of 18 to 30 yrs people in Urban Upper and Middle Class 
7.65M : 0.25*0.5*0.3* 1200M = 45M 
Ratio = 1:6 
 
The sanity check makes sense since 1 out of 6 in the age group of 18 to 30 yrs in Urban and Middle Class using 
online dating platforms.  
 
 
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