Hike has exited WinZo after a $12 million buyback from the company. This gave Hike a 400% return on its investment it made in May 2019.
The buyback comes after WinZo raised $13 million in addition from its existing investors, namely, Makers Fund, Stephan Pagliuca, and Courtside Venture.
This exit deal has received a go-ahead from the Ministry of Corporate Affairs (MCA), Government of India. The amount involved makes the buyback one of the largest transactions by any start-up in its early stage. Back in 2019, Hike has also participated in an earlier series A funding of $5 million of WinZo, receiving 400% returns within 18 months.
Hike had announced shutting down its messaging business earlier this year and launched “Rush” a conflicting gaming app. WinZO in its September 2020 series B funding had raised $18 million, taking the cumulative finances raised thus far to $38 million.