Hike, once widely regarded as one of India’s most promising technology ventures and even attaining unicorn status with a multi-billion-dollar valuation, has ultimately found itself undone by recent regulatory changes. The company, founded and led by Kavin Bharti Mittal—the son of telecom magnate and Airtel founder Sunil Bharti Mittal—has been forced to shutter operations after the Indian government’s sweeping ban on real-money gaming. What began as one of India’s boldest attempts to build a homegrown alternative to WhatsApp has now come to a definitive end, marking not only the closure of a well-known brand but also highlighting the immense impact that policy changes can have on even the most well-funded startups.
In a public statement released over the weekend, Mittal reflected on the trajectory of his company. He noted that Hike’s relatively new U.S. venture—launched just nine months earlier—had shown early signs of success, which he characterized as being “off to a strong start.” However, he acknowledged that extending this momentum on a global scale would involve a complete restructuring of strategy and capital allocation. According to him, this level of reinvention would not be a judicious use of their financial resources or the team’s time, ultimately leading him to conclude that a shutdown was the most pragmatic course of action.
Hike’s story has involved several significant reinventions. Initially introduced in 2012 as an instant messaging app aimed at competing directly with WhatsApp, Hike quickly garnered substantial attention by targeting India’s youthful digital population with playful features and localized innovations. However, despite attracting millions of users and the backing of heavyweight global investors, the platform was unable to maintain momentum against WhatsApp’s dominance. This setback led the company to reimagine its focus, eventually pivoting to real-money gaming. Its flagship platform, called Rush, provided accessible yet competitive games such as ludo and carrom, offering cash rewards to participants. This approach struck a chord with many young Indians seeking both entertainment and potential earnings. Following the official discontinuation of Hike Messenger in 2021, Rush became the centerpiece of Hike’s operations, steadily growing to amass more than 10 million users. Over four years, it generated over $500 million in gross revenue, an achievement that underlined the scale of opportunity within the sector before the government’s recent clampdown.
Hike’s ability to secure investor confidence also contributed to its early prominence. Global funds and tech giants including Tiger Global, SoftBank, and Tencent saw value in Mittal’s vision of creating a formidable competitor to WhatsApp. At its peak in 2016, Hike carried a valuation of $1.4 billion, cementing its place within India’s exclusive circle of unicorns. Mittal himself, reflecting on whether further capital should be raised to attempt yet another shift in direction, expressed deep reservations. In an introspective Substack essay, he asked rhetorically whether such a pivot was worth pursuing, concluding decisively that—for the first time in over a decade of building—the answer was no, neither for himself nor for his team nor for his supportive investors. This candid admission marked a defining moment in Hike’s history, closing the chapter on one of India’s most ambitious app experiments.
The broader backdrop to Hike’s demise is a regulatory shockwave that has reverberated across India’s sprawling online gaming industry, an ecosystem valued at roughly $23 billion. In January, the Indian central government introduced the Promotion and Regulation of Online Gaming Act, 2025, a wide-ranging law that imposed an outright ban on platforms enabling real-money wagering. Officials justified the drastic measure by citing mounting concerns over the social and financial harm caused by such games. Authorities pointed to tragic cases, including incidents of suicide reportedly linked to individuals losing large sums of money while playing. The government’s firm stance reflected growing unease with the sector’s rapid and unregulated growth.
The industry response was swift and sobering. Market leaders such as Dream Sports and Mobile Premier League (MPL)—once celebrated for shaping India’s fantasy and casual gaming boom—announced major shutdowns or scaled back their India operations significantly. Some have begun testing new directions in adjacent industries, including experimental formats like short-form micro-dramas or branching into financial services as alternative growth drivers. Others are attempting to shift their focus beyond India, exploring international markets in a bid to preserve at least portions of their gaming business. Yet the magnitude of disruption has been severe, forcing widespread restructuring and reallocation of strategy.
The effects on employment have been equally dramatic. Across the sector, approximately 2,000 layoffs have already taken place, spanning companies such as Games24x7, Head Digital Works, MPL, and Zupee. In some cases, insiders revealed that firms might reduce their employee base by as much as 90 percent as they evaluate whether to survive through reinvention or enact an orderly exit. These sweeping job losses underscore the profound human cost that regulatory decisions can exert on fast-growth industries, particularly those that had previously attracted substantial talent and capital.
Even venture capital investors—many of whom anticipated continuous growth trajectories—have begun scrutinizing founders regarding the adequacy of their risk assessments. According to individuals close to these conversations, some VCs have openly questioned whether there were early signals of impending regulation and, if so, why companies failed to take precautionary actions to mitigate the fallout. This tension between investors and operators illustrates the fragile balance between aggressive growth strategies and regulatory foresight.
Adding yet another layer of complexity, the Indian Supreme Court has recently consolidated all petitions challenging the new law. These cases, previously lodged across multiple state courts, have now been transferred to the apex court. Although this step ensures unified judicial consideration, the Supreme Court has not yet commenced hearings, leaving the fate of the industry in limbo. For now, the absence of clarity only prolongs uncertainty for both startups and their backers.
Mittal closed his reflections on Hike’s journey with a recognition of the disappointment but also with a lens of optimism. He described the outcome as difficult but insisted that the lessons gained through the company’s evolution—and through the abrupt ending brought by regulatory change—were invaluable. With remarkable composure, he emphasized that, despite Hike’s shutdown, his conviction about building the next chapter of his entrepreneurial career is stronger than ever.
Thus, Hike’s rise and fall should be remembered not merely as the story of a single startup but also as a case study in the volatility of innovation-driven markets, where societal considerations, political imperatives, and unpredictable regulation can shape, transform, or even erase entire business models in remarkably short spans of time.
Sourse: https://techcrunch.com/2025/09/13/hike-once-a-unicorn-shuts-down-as-india-cracks-down-on-real-money-gaming/
