While hiring season was just picking up, startups now seem to counter the trend. Messaging platform Hike has announced employee layoffs for up to 20-25% as it is shutting down its Bengaluru operations.
A Hike representative confirmed the news stating,
We made a few acquisitions last year that skyrocketed the team size, mostly in Bengaluru. We’re integrating and streamlining these teams. Just business as usual.
Kavin Bharti Mittal, company’s co-founder informed that it had become increasingly difficult for the company to manage both the locations. As a result, the platform is finally moving its base to Delhi.
The report has speculated that most of the reductions are from its last two acquisitions — Creo and InstaLively. Moreover, the layoffs are expected in multiple functions such as accounting, human resources, finance among others.
However, the good part is that the employees being laid off will be given a severance package along with two months salary and upwards.
Founded in 2012 by Kavin Bharti Mittal, Hike marked the first messaging and social technology startup in India. Since its inception, Hike had been bringing in new features related to stickers, themes, privacy etc. to garner popularity in the country.
Hike had reached a company valuation of $1.4 billion in August 2016 when it had successfully raised $175 million from China’s Tencent Holding and other investors. Apart from its acquisitions, Hike had last year expanded its digital wallet offering cab, bus and train bookings on its platform.