Hike Messaging App Shut Down: Tencent-Backed Rival to WhatsApp Fails

The Indian alternative to WhatsApp has shifted its focus beyond simple messaging.

Hike Messenger, which has received funding from Tencent, Tiger Global, and SoftBank and reached a valuation of $1.4 billion in 2016, recently announced the discontinuation of StickerChat, its messaging application. (Users of StickerChat received notifications regarding this change late last week.)

The company, established by Kavin Bharti Mittal, has transitioned to two new virtual social platforms named Vibe and Rush, according to Mittal, the son of Sunil Bharti Mittal, chairman of the telecommunications provider Airtel.

In a series of posts on social media earlier this month, Kavin stated that India is unlikely to develop a domestically-grown messaging service that gains significant traction in the world’s second-largest market unless it restricts the operation of Western companies within the country. He explained that “global network effects are too strong.” WhatsApp currently boasts over 450 million users in India, making it the platform’s largest user base globally.

Mittal characterized the possibilities in creating virtual environments as a “more effective strategy for the current landscape, which benefits from affordable, high-speed data and advanced smartphones.”

The phasing out of Hike’s messaging service coincides with a period of substantial growth for Signal and Telegram, both of which have gained millions of new users in recent weeks. Planned changes to WhatsApp’s data-sharing policies have led many of its users to investigate alternative options this month. Mittal tweeted earlier this month that “Both [Telegram and Signal] are excellent. They possess the appropriate motivations (more closely aligned with consumers) in contrast to Facebook products.”

Over the past several years, Hike concentrated on stickers and emojis to appeal to a younger demographic in India. During a discussion with TechCrunch in late 2019, Mittal mentioned that the startup was impressed by the level of engagement with stickers on its platform and was working towards automating the creation of customized stickers.

In a separate meeting last year, Mittal presented emojis designed to mimic human expressions and a virtual gathering space known as HikeLand. Vibe represents a reimagined version of HikeLand, and the emojis developed by Hike will remain accessible to users on both of the new applications, Mittal stated earlier this month.

Hike, having secured over $260 million in funding to date, had sufficient financial resources last year, according to Mittal, who also suggested the possibility of seeking additional capital in the future.

Hike also explored the development of its own operating system through the acquisition of a company called Creo. In 2018, Hike introduced Total OS, which was intended for users with inexpensive Android smartphones and limited data plans.

The startup subsequently discontinued this project. Mittal explained to TechCrunch that the emergence of Reliance Jio, which prompted Airtel and Vodafone to reduce mobile data costs, resolved the data challenges in the country, rendering Total OS unnecessary in the market.