Vernacular social gaming platform WinZO on Monday said its early investor, Hike has exited the company via a USD 12 million share buyback programme. Hike had participated in the USD 5 million series-A funding round in WinZO in 2019, and has received 4X returns within a span of 18 months, a statement said.

”This exit transaction, which has received a nod from the Ministry of Corporate Affairs (MCA), saw WinZO buyback Hike’s share for USD 12 million, making it one of the largest buyback transactions by an early stage start-up in the Indian start-up ecosystem,” it added. The development comes after WinZO has raised USD 13 million capital from its existing investors- Stephan Pagliuca, Makers Fund, and Courtside Venture, it said. These investors had led the USD 18 million series-B fundraise in WinZO in September last year. With this, the company has raised a total of USD 38 million.

Earlier this year, Hike had announced shutting down its primary messaging business and launched a conflicting gaming app Rush, similar to WinZO.

Post the series-B round, WinZO had waived off the non-compete for Hike, alongside withdrawing access to the board and the company, it said. Hike’s been given a complete exit from WinZO. As founders, we are super chuffed and humbled to have a Board that is extremely bullish, and completely aligned with the audacious goals we have set for ourselves. They had immensely supported the company through the process, Paavan Nanda, co-founder of WinZO, said.

First Published:May 3, 2021 3:24 PM IST