Introduction:
In the bustling tech landscape of 2012 India, a young entrepreneur with a famous last name launched an ambitious messaging app. Kavin Bharti Mittal, son of telecom tycoon Sunil Bharti Mittal, set out to create India’s answer to WhatsApp. Hike Messenger burst onto the scene with dreams of conquering the world’s second-largest mobile market. For a while, it seemed unstoppable – amassing millions of users, achieving unicorn status, and promising to be the super app India needed. But eight years later, Hike’s journey came to an abrupt end, leaving behind lessons on the challenges of competing in the cutthroat world of messaging apps.
The Rise of Hike
When Hike Messenger launched in December 2012, India’s mobile internet revolution was just beginning. Smartphones were becoming more affordable, and millions of young Indians were coming online for the first time. Kavin Bharti Mittal saw an opportunity to create a messaging app tailored for this new generation of mobile-first users.
“We are seeing a strong traction for Hike amongst the youth and over 80% of our user base is under 25,” Mittal said in 2014, as Hike crossed 15 million users. The app was gaining popularity fast, especially among tech-savvy urban youth.
Hike’s rise was meteoric. Within three years of launch, it had amassed 70 million users. By January 2016, it crossed the coveted 100 million user milestone. Flush with cash from marquee investors like Softbank, Bharti Enterprises, and Tiger Global, Hike seemed poised for greatness.
The app kept adding new features to stay ahead of the curve. It introduced free SMS, localized sticker packs, hidden mode for privacy, and even a digital wallet. In 2016, Hike raised $175 million from Chinese tech giant Tencent and Taiwanese manufacturer Foxconn at a valuation of $1.4 billion. It had officially entered the unicorn club.
“We’re going to build Hike into the world’s largest storytelling platform,” an ambitious Mittal declared at the time.
The Dream of Becoming India’s Super App
Emboldened by its success and armed with a war chest of funding, Hike set its sights on becoming India’s super app – an all-in-one platform for messaging, payments, gaming, and more. It was inspired by the success of China’s WeChat and wanted to replicate that model for India.
In 2017, Hike introduced its digital wallet, allowing users to send money to each other and pay bills. It added features like voting, bill splitting, and even an in-app virtual world called HikeLand. The company rapidly expanded its workforce from 140 to 380 employees.
“We are finally in a place where we can change that, build experiences that are rich, that are joyful, that can potentially put relationships at the center,” Mittal said, explaining the vision behind HikeLand.
But cracks were beginning to show in Hike’s super app ambitions. User growth slowed as WhatsApp’s dominance in India became unshakeable. The expanded feature set made the app bloated and complicated. In 2018, Hike had to lay off 25% of its workforce.
The Struggle to Compete with Global Giants
Despite its early success, Hike found it increasingly difficult to compete with global tech giants like Facebook and Google. WhatsApp, in particular, had become deeply entrenched in India, reaching over 400 million users by 2020.
“India won’t have its own messenger,” Mittal conceded in a tweet in January 2021. “Global network effects are too strong (unless India bans Western companies).”
Hike tried various pivots to find its niche. It split its app into multiple specialized apps – Hike Sticker Chat for messaging, Vibe for social experiences, and Rush for gaming. But none of these managed to gain significant traction.
The company’s focus on growth over monetization also came back to haunt it. It was only in 2020, eight years after launch, that Hike seriously started thinking about how to make money.
“There’s literally been no innovation in social whatsoever. And we’re sort of stuck with these experiences of the last decade that were built for the 2G world and in some cases built for PC first,” Mittal reflected, explaining Hike’s struggles to innovate in a rapidly evolving market.
The End of the Road
On January 6, 2021, Mittal made a surprising announcement on Twitter: “Today we’re announcing that we will be sunsetting StickerChat in Jan’21. We thank you all for giving us your trust. We wouldn’t be here without you.”
Hike Messenger, once valued at $1.4 billion, was shutting down. The app that had once dreamed of being India’s super app was being removed from app stores.
“We thank you for creating amazing memories with us on Hike Sticker Chat and giving us your love and trust for so many years,” the company said in its farewell message to users.
The shutdown marked the end of an eight-year journey that had seen soaring highs and crushing lows. Hike had gone from being India’s fastest-growing internet company to joining the long list of failed messaging apps.
Timeline of Key Events:
- December 2012: Hike Messenger launches
- September 2013: Reaches 15 million users
- August 2014: Crosses 35 million users
- October 2015: User base grows to 70 million
- January 2016: Crosses 100 million registered users
- August 2016: Raises $175 million, achieves unicorn status
- June 2017: Launches Hike Wallet
- 2018: Lays off 25% of workforce
- 2019: Splits into multiple specialized apps
- January 2021: Announces shutdown of Hike Messenger
Key takeaways and Lessons Learned
Hike’s journey from a promising startup to a failed unicorn offers several valuable lessons for the Indian startup ecosystem:
1. First-mover advantage isn’t everything: Despite being an early entrant in the Indian messaging app market, Hike couldn’t sustain its lead against global competitors.
2. Focus is crucial: Hike’s attempt to become a super app by adding numerous features may have diluted its core messaging experience.
3. Monetization matters: Growing a large user base is important, but having a clear path to profitability is equally crucial for long-term sustainability.
4. Understanding user needs is key: While Hike tried to cater to Indian users with localized features, it couldn’t create a compelling enough reason for users to switch from established platforms.
5.Competition with global tech giants is challenging: For local startups, competing against well-funded global companies with strong network effects is an uphill battle.
As Mittal said in his parting message, “We wouldn’t be here without each and every one of you.” While Hike’s messaging dream may have ended, its story serves as both a cautionary tale and a source of lessons for the next generation of Indian tech entrepreneurs. The company has since pivoted to focus on gaming and social experiences, hoping to find success in new avenues. Only time will tell if this new direction will lead to the breakthrough Hike has long sought.
