Indian tech startup Hike, once valued at $1.4 billion, is shutting down its operations following New Delhi’s recent blanket ban on real-money online gaming, founder and CEO Kavin Bharti Mittal announced.
Mittal, son of Airtel founder Sunil Bharti Mittal, noted that while Hike’s nine-month-old U.S. operations were off to a strong start, scaling globally would necessitate a full recapitalization and organizational reset that is not the best use of capital or time.
From WhatsApp Rival to Cash Gaming Success
Originally launched in 2012 as an instant messaging platform to challenge WhatsApp, Hike pivoted into the real-money gaming space after closing Hike Messenger in 2021. Its core platform, Rush, offered casual titles like carrom and ludo for cash prizes. During its four-year run, Rush attracted more than 10 million users and generated over $500 million in gross revenue.
Hike’s early ambitions in social messaging earned support from top venture firms, including Tiger Global, SoftBank, and Tencent, lifting the company to a $1.4 billion valuation in 2016.
Why Hike Passed on Another Pivot
Despite the option to secure fresh funding, leadership ultimately decided against restructuring the company for a second time. “We could raise the capital, but the real question is: Is it worth it? Is this a climb worth pivoting for?” Mittal wrote in a Substack post. “For the first time in 13 years, my answer is no. Not for me, not for my team, and not for our investors.”
India’s Regulatory Crackdown Hits $23B Sector
The shutdown stems from the Promotion and Regulation of Online Gaming Act, 2025, passed last month by the Indian government to ban all real-money gaming platforms. Federal authorities cited severe public harm, including cases of suicide linked to gaming financial losses, as the rationale behind the strict ban.
The law sent shockwaves across India’s $23-billion real-money gaming sector. Prominent industry leaders, such as Dream Sports and Mobile Premier League (MPL), quickly terminated their domestic real-money operations. Several players are now pivoting to alternative sectors like micro-dramas and financial services, while others are expanding into overseas markets to keep their core gaming products active.
Widespread Layoffs and Legal Battles
The ban has triggered severe workforce reductions, resulting in an estimated 2,000 job losses across major firms like Games24x7, Head Digital Works, MPL, and Zupee. Some operators are planning to cut up to 90% of their staff as they restructure or wind down operations.
The sudden fallout has led venture capital investors to question portfolio founders on whether regulatory warning signs were overlooked and why preemptive contingency plans were not implemented.
Meanwhile, the Supreme Court of India recently transferred all petitions challenging the new legislation from state courts to itself, though formal hearings have yet to begin.
“This is both a disappointment and a hard outcome. But I choose to look on the bright side: the learnings are invaluable, and my conviction for what’s next is even stronger,” Mittal stated.
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