Hike’s Recent Layoffs: The Impact of GST Hike on Online Gaming
Hike is a leading Indian messaging application that has been in the market since 2012. Founded by Kavin Bharti Mittal, Hike was created with the objective of providing Indian users with a messaging platform that caters to their unique needs and requirements. The platform boasts of a range of exciting features, including free messaging, group chats, voice and video calling, and much more. Over the years, Hike has emerged as one of the most popular messaging platforms in India, with over 100 million users across the country.
History
Hike was founded in 2012 by Kavin Bharti Mittal. Kavin is the son of Sunil Mittal, the founder of Bharti Airtel, one of India’s largest telecom operators. Hike was created with the objective of addressing the needs of the Indian market, which had yet to see a messaging platform that was tailor-made for Indian users. Since its inception, Hike has grown rapidly and has become one of India’s leading messaging platforms.
What is Hike into?
Hike is an Indian messaging app that caters to the unique needs and requirements of Indian users. The platform offers a range of features that are designed to make messaging more fun and interactive for Indian users. Some of Hike’s popular features include free messaging, group chats, voice and video calling, stickers, and much more.
Funding and Investors
Hike has received funding from some of the biggest names in the Indian and global startup ecosystem. In August 2016, Hike raised $175 million in funding from a range of investors, including Tencent, Foxconn, and Bharti Enterprises. In August 2014, Hike raised $65 million in funding from a group of investors, including Tiger Global Management, Bharti Softbank, and SoftBank Corp.
Performance
Hike has been performing well in the Indian market, with more than 100 million users using the platform on a regular basis. The platform has also been expanding its range of features to cater to the evolving needs of Indian users. However, like many other companies, Hike has been affected by the COVID-19 pandemic and the subsequent economic slowdown.
Number of Employees Laid Off
Hike laid off around 55 employees on 10 Aug 2023.
Reasons for Layoffs
Hike recently announced layoffs of around 55 employees, citing the impact of the Goods and Services Tax (GST) hike on online gaming. The company stated that the GST hike had resulted in a significant increase in operating costs and had impacted the overall performance of the company. As a result, the company had to take the difficult decision of letting go of some of its employees.
Stakeholder Statements
In an official statement, Kavin Bharti Mittal, the CEO of Hike, stated –
The decision to lay off employees was an extremely difficult one, but we had to take it in the best interest of the company. The GST hike on online gaming had a significant impact on our operating costs, and we had to restructure our operations to ensure that we remain competitive in the market. We are committed to helping our employees through this difficult time and are exploring various options to provide them with the necessary support.
In conclusion, Hike has been one of the most popular messaging platforms in India, with more than 100 million users across the country. However, like many other companies, Hike has been affected by the COVID-19 pandemic and the subsequent economic slowdown. The recent layoffs announced by Hike were a difficult decision, but the company had to take it in the best interest of its operations. We hope that the company is able to navigate this difficult period and emerge stronger and more competitive in the market.
