Hike eyes 100 mn users by next year

OTT messenger app service working on a series of services which would help it earn revenues in near future

Hike, India’s second largest over-the-top messenger app service, plans to increase its user base to 100 million by next year. While the company also plans to start earning revenues in the next 12-18 months, chief executive and founder Kavin Bharti Mittal said the immediate focus was to gain more users.

“The market is changing fast and it becomes even more complex to build a great product that is used by 100 billion people. That’s our primary focus right now. We don’t believe in making money right now; it’s important to have a long-term view on business. We believe we have to get the product right, have a very large user base and then start thinking about generating revenue on a big scale,” said Mittal.

The company is working on a slew of products, which it believes that would be a major source of revenue in the near future. Cashing in on the ongoing festive season, Hike has tied up with around 100 brands including online marketplace giants. It has also launched a coupon service for getting discounts and benefits from partner brands.

“Coupons will be a source of revenue in the future. We are not only adding value to the consumers but also adding value to the brands that are partnering with us. Once that is established, then it makes sense to figure out the best revenue model for us which also benefits our consumers and brands. That is something that will take six to seven months,” added Mittal.

The company, which recently acquired Zip Phone, is open to more acquisitions. “We are looking to partner with people; it could be organic or inorganic. We are very open to acquire or partner with these companies. We already acquired Zip Phone, when we launched Voice with the Zip Phone technology. We are always talking to a bunch of people in the market; so there is no specific strategy over here,” Mittal noted.

The company, which has a headcount of 200 employees at present, plans to double it in the next year. Last year, Hike secured $65 million from Tiger Global. It plans to raise another round of funding in the next six to 12 months.