Hike selling off its stake in WinZO: Reports

Hike is aiming to get back into gaming with two new products which are Vibe, an exclusive social platform and Rush, a gaming platform⁠. In that process the company is now selling its two-year old stake in WinZO, a real money gaming platform.

As per news source, Hike and WinZO’s talks are in the late stages.

“It seemed like such a natural step for Hike to want to double down on scaling Rush. As a part of this move, it's likely going to sell its stake in WinZO. Kavin's vision for gaming is so much bigger. Investing in WinZO was just one step in that direction. When they invested in WinZO, they could have either acquired it, gotten a majority share, or sold it with good profit. Selling the stake and focusing on Rush is a smart move and is part of a larger roadmap on building incredible new social products," said a source requesting anonymity.

The news source also reveals that WinZO has confirmed that it had been working towards a complete exit of Hike from the cap-table. “Any other detail at this point cannot be provided or confirmed,” said the company. The company did not mention who would be buying Hike’s stake.

The messaging platform, Hike had invested in WinZO in the year 2019 as a part of its $5 million series A round. “Gaming to us has always been a new, bite-sized source of entertainment for the masses. As we unbundle Hike, we think of our investment in WinZO and its stellar team as a strong bet in the segment,” Mittal had said in a statement earlier.

This step comes at a time when the messaging platform - Hike is looking to go ahead for fundraising itself later this year, and also looks to solidify its position in the gaming industry.

Another source said the news portal the Hike signed a non-compete clause deal with WinZO while investing. However, that clause has now been waived off, said the source.