Does Hike Messenger worth $1.4 billion?

Posted on March 28, 2017 by

During the last week, the messaging app named as Hike Messenger started the latest technology for joining the so-called “unicorn” expedition in India, where companies valued it to the $1 billion. Hike has been marked quickest during this to reach the mark, in only three and a half years after its release. The e-commerce app Flipkart took five years, while its opponent Snapdeal took seven years and the analytics company Mu Sigma took nine years to become the unicorns.

The hike is the loner firm too, in the whole unicorn package which is free. However, it will make money in future. The hike will start gaining the huge worth and money by 2018 or 2020, according to the founder Kavin Bharti Mittal. However, thanks to the foreign investors who gathered $175 million and thus the app reached to the worth of $1.4 billion.

Mittal thinks that rise in the worth of Hike by $175 million is like the raise made by Flipkart to $1 billion. That’s why the value which you can consider Hike as one of the top rich messenger apps at the local level all across the India. The profit gained by the investments totally depend on the platform at which it works.

So far, Hike has not made much revenue. What it owns, apart from the faint evaluations, is the database of 100 million users who are hooked to this platform. The app has launched more than 300 million stickers and emoji which are used in 1 billion chat messages daily, but for doing the real deal, it is important to gather the critical mass. Here, the critical mass refers to the amount which keeps changing with the shift of the internet user base in the country. There are 200 million active internet users found in only India, out of which 15% are taking advantage of the sensible data (more than 0.5GB), 35% of these use sachet packages, and 35% are the occasional users (they use only Wi-Fi services).

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Thus you are left with 30 to 40 sensible users. This mixture should have to be better, up to at least 70% sensible users. In the US, the usage is 4GB for each person monthly on average. While in India, it is less than 0.5GB (the majority of users utilize less than 10MB internet each month). You can’t even download media or send pictures at this speed. In this scenario, Hike has made the stickiness of usage of internet, which raised these quantities to a high level.