Total revenue jumped 1.6X to INR 21.76 Cr in FY22 from INR 8.31 Cr in FY21
The company’s total expenses in FY22 rose 3% year-on-year to INR 140.45 Cr
Loss after tax narrowed by 7.2% to INR 118.69 Cr in FY22 from INR 127.9 Cr in FY21
The Indian entity of social media startup Hike reported a 107X rise in operating revenue to INR 19.22 Cr in FY22 from INR 17.73 Lakh in FY21. The massive jump in revenue comes on the back of years of struggle and finally rebranding from a messaging app to gaming in July 2020.
Total revenue also jumped 1.6X to INR 21.76 Cr in FY22 from INR 8.31 Cr in FY21. It must be noted that the company had posted total revenue of INR 13,000 in FY20. Naturally, the pivot to gaming platform Rush and the virtual world Hikeland seems to have paid off for the company that started as a peer-to-peer messaging app.
Currently, Hike generates revenue from Rush by charging an entry fee from its customers as well as membership fees from VIP members. A small part of the total revenue (INR 21.76 Cr) also included income from interest on investments of INR 2.55 Cr.
Rush Gaming Universe (RGU) is a play-to-earn platform where users participate in games and generate digital assets based on the outcome of gameplay. These players can own the networks and economies they create and earn from their pooled entry fees. On the other hand, the Hikeland is a virtual world where one can hangout with friends online while playing Ludo or watching videos.
The company’s total expenses (excluding any amount paid to customers as a part of their winnings) in FY22 amounted to INR 140.45 Cr, a 3% year-on-year (YoY) increase from INR 136.22 Cr in FY21.
A large portion (more than 50%) of the expenses can be attributed to employee benefits. Hike spent INR 71.44 Cr on employee benefits, a 15.8% YoY rise from INR 61.67 Cr in FY21. This cost also included the settlement made by the company to its employees in equity worth INR 14.9 Cr.
While majority of the key managerial persons (KMPs) either did not draw any salary or were not eligible, the company’s CEO and MD Kavin Bharti Mittal drew a salary of INR 17.55 Lakh. He resigned as the company’s MD on March 01, 2022. Besides, compliance specialist Shivali Luthra, appointed on March 25, 2022, drew a salary of INR 19.66 Lakh.
Hike posted a 670% jump in its marketing expenses to INR 37.04 Cr from INR 5.5 Cr in FY21.
Its loss after tax narrowed by 7.2% to INR 118.69 Cr in FY22 from INR 127.9 Cr in FY21.
In January 2022, the company received an undisclosed amount of funding from blockchain startup Polygon. At that time, Hike claimed it had more than $50 Mn in winnings on Rush and 100 Mn gameplays in the December quarter across eight games.
Later, Jump Crypto, Tribe Capital and Republic Crypto also backed Hike and its Rush Gaming Universe.
