Hike Messenger gets $175 mn funding from Tencent, Foxconn; enters $1 bn unicorn club

Existing investors Tiger Global, Bharti and Softbank Group also participated in this round

PTI August 17, 2016 08:07:05 IST
Hike Messenger gets $175 mn funding from Tencent, Foxconn; enters $1 bn unicorn club

New Delhi: Hike Messenger has raised $175 million in a fresh round of funding led by Tencent Holdings and Foxconn Technology Group, joining the coveted 'unicorn' club of startups with a valuation of almost $1.4 billion.

This is the fourth venture capital round and the biggest to date for Hike, founded by Kavin Bharti Mittal, son of Bharti Enterprises Chairman Sunil Mittal.

Hike Messenger gets 175 mn funding from Tencent Foxconn enters 1 bn unicorn club

Existing investors Tiger Global, Bharti and Softbank Group also participated in this round.

The latest round of funding takes the total investment to over $250 million, valuing the company at nearly $1.4 billion, Hike said in a statement.

The 'unicorn' club -- or startups with valuation of over $1 billion -- include Flipkart, Snapdeal and Ola from India.

Commenting on the new round of funding, Kavin Mittal said that the company would be investing in services, people, office space as well as some long term bets in areas of machine learning and computer vision.

He, however, did not comment on the quantum of stake that Tencent Holdings and Foxconn Technology Group had taken with the fund infusion.

Hike is also looking for buy-outs, Mittal said.

"We will be open to acquisition of technology, and great teams and people...that enhance our vision and mission," he said, but ruled out an IPO at this juncture.

"It's too soon in our journey (for an IPO). We are only three-and-a-half years into the business. It typically takes 6-8 years for business to reach maturity," he said.

In January 2016, Hike had announced it has a base of 100 million users. As much as 95 percent of Hike users are based in India and 90 percent of them are below the age of 30 years. Hike users on an average exchange 40 billion messages per month.

Hike's biggest rival WhatsApp was bought by social networking giant Facebook in 2014 for a whopping $19 billion. Hike's other competitors include LINE, Viber and WeChat.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Eid-ul-Adha 2020: Here's how to download and send themed-WhatsApp stickers
News & Analysis

Eid-ul-Adha 2020: Here's how to download and send themed-WhatsApp stickers

Users can download and share the themed-festival WhatsApp stickers via the apps available on PlayStore.

Independence Day 2020: Here is how to download and send themed WhatsApp stickers
News & Analysis

Independence Day 2020: Here is how to download and send themed WhatsApp stickers

Users can download Independence Day themed WhatsApp stickers apps from PlayStore.

WhatsApp for Android is expected to get the advanced search mode soon
News & Analysis

WhatsApp for Android is expected to get the advanced search mode soon

With the advanced search, WhatsApp users will be able to search for photos, audio and other forms of media much more efficiently.