Well let me tell you something: The creator of this app (Kavin Bharti Mittal) is son of the guy (Sunil Bharti Mittal) running one of the big telco company (Airtel) in India. I think he sure has something up his sleeve, and this is why the investment of 7M sounds disingenuous and misleading, given that the VC company is just another venture of Airtel.

I got interested as to what is their value proposition and why are they doing it. Then I came upon this information. Here is the nitty gritty.

From their TOS:

We may share non-personally-identifiable information (such as anonymous user usage data, referring / exit pages and URLs, platform types, asset views, number of clicks, etc.) with third-parties to better understand usage patterns for certain content, services, advertisements, promotions, and/or functionality related to hike application.

hike may receive data whenever You connect with an application or site through hike (such as during status update, when You connect to other sites and in which case hike posts to these sites on Your behalf ). This may include date and time You visit the site, the web address, IP address information, browser and if You are logged into hike and Your authentication tokens used on such sites. Your authentication tokens may be saved on the server for the sole purpose of seamless posting to the same site by You in the future through hike.

They store the "Authentication tokens"...