Indian messaging app Hike acquires hardware startup Creo


India-based messaging app Hike is back on the acquisition trail
after it picked up Creo, a
hardware company that previously released smartphones,
streaming devices and an operating system.

The price of the deal is undisclosed. Hike released a short
statement late on Friday announcing the acquisition, although
it does not appear that the 50-person Creo will continue to
work on hardware.

“The Creo team will begin work on a developer platform to
enable third party developers to build services on the Hike
platform,” a Hike spokesperson said.

Creo recently slashed the price of its Mark 1
smartphone, and it confirmed on its website that it will be its
last.

“To build our next product, we need all the focus and good luck
we can. Owing to this, we will no longer be making new CREO
Mark1 devices or releasing any software updates,” it wrote on
its website.

Bangalore-based Creo was founded in 2013, it had raised $3 million and it has plenty of
links with Hike. Founders Sai Srinivas Kiran G and Shubham
Malhotra are former Hike employees, while Hike CEO Kavin
Bharti Mittal is one of its investors alongside major names like Sequoia.

Unsurprisingly that led to plenty of rumors of an acquisition,
with The Ken reporting last October that a deal was
close. Bharti Mittal rejected the deal at the
time saying that Hike talks to many companies at any given
time.

The deal is Hike’s third acquisition. It bought WiFi calling startup Zip Phone in 2015
and live-streaming company Pulse, although it
has not confirmed the latter deal. It was valued at $1.4
billion following a $175 million investment by Tencent last
year. It has raised $261 million in total.


Featured Image: Hike

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