Why $1.4 Billion Startup Failed? | Hike Messenger Case Study

Hike messenger valued around 1.4 billion dollars in year 2016 and in 14th January 2021 completely got shutdown. Company loss $27 million in FY19. 

Hike messenger started in year 2012 by Kavin Bharti Mittal son of Sunil Bhati Mittal who well known as founder of Airtel Telecom. Company gots it's total funding of $262 million in 2016 it had become unicorn startup in country.

A Case Study on the Downfall of Hike Messenger

In 2016 Hike Messenger having 35 million active users till now in 2021 it only have less then 2 million users. While doing great innovation why this startup got failed? Here is few of reason of getting failed. 

Kavin Bharti Mittal, Hike Messenger, Hike Messenger Case Study

Selective Targeting 

When company started they focused on certain facture, while selecting target such value proposition, pricing, feeling & emotion and age group. They focused on youngster of age group between 18-24 it was the biggest mistake because they ignored the rest of population. 

Hike had done great innovation but it is enough to ran a business. Company only target certain age group. And its interface was not easy to use as compare to it's competitor WhatsApp and WeChat. They didn't observed market and forget about consumer need. The one who observe and the serve take the pot of gold. 

Multiple Features

They added multiple featured along with sending messages users can also play games, checklist and make payments to and becomes Super App. But those innovation becomes more complex for the user. 

Adding multiple feature in app size being increased. App size was around 75 MB it was not quite huge but in compare to technology in year 2012 in India. And number of users being decreased and users prefer WhatsApp to saving data. 

Revenue Model

Hike didn't having any unique feature they only added others features in one and can't build up competitive advantage. Company only focused on innovation but can't build proper revenue model. In few years then loss 98 million users and now completely got shutdown. 

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