Hike, as soon as one in every of India’s most dear startups with unicorn standing, has change into the newest casualty of New Delhi’s current real-money gaming ban, with the corporate — led by Kavin Bharti Mittal, son of Airtel founder Sunil Bharti Mittal — now shutting down.
On Saturday, Hike founder Mittal (pictured above) mentioned that the startup’s U.S. enterprise, which launched 9 months in the past, was “off to a powerful begin.” However he mentioned scaling it globally would require “a full recap, a reset that isn’t the perfect use of capital or time.”
Initially launched as an prompt messaging app rivaling WhatsApp in 2012, Hike pivoted to real-money gaming in recent times, with its main platform, Rush, providing informal video games like carrom and ludo for money prizes, following the shutdown of Hike Messenger in 2021. Rush attracted over 10 million customers and generated greater than $500 million in gross income over its four-year run, Mittal mentioned.
Storied buyers together with Tiger International, SoftBank, and Tencent backed Hike’s early ambition to tackle WhatsApp with a youth-focused messaging app. The startup was valued at $1.4 billion in 2016.
“We might elevate the capital, however the actual query is: is it price it? Is that this a climb price pivoting for?” Mittal wrote in a Substack put up. “For the primary time in 13 years, my reply isn’t any. Not for me, not for my staff, and never for our buyers.”
Final month, the Indian authorities shocked the $23-billion real-money gaming trade by introducing the Promotion and Regulation of On-line Gaming Act, 2025, which imposed a blanket ban on such platforms. The federal authorities mentioned the choice was aimed toward addressing incidents of hurt, together with circumstances the place people reportedly died by suicide after shedding cash in these video games.
In response, prime trade gamers together with Dream Sports activities and Cell Premier League (MPL) started shutting down their real-money gaming operations in India. Whereas some began pivoting to new ventures like micro-dramas and monetary providers, others started exploring worldwide markets to maintain components of their gaming companies alive.
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The crackdown has additionally triggered a wave of layoffs, with round 2,000 job losses reported throughout corporations like Games24x7, Head Digital Works, MPL, and Zupee. A few of them are planning to chop as much as 90% of their workforce as they try to adapt or exit the area, sources instructed TechCrunch.
Some VC companies backing these startups have additionally questioned their founders on whether or not there had been any early indicators of regulatory motion — and in that case, why no steps have been taken to mitigate the impression, sources accustomed to the conversations instructed TechCrunch.
Earlier this week, the Indian Supreme Courtroom transferred all petitions difficult the brand new legislation — the principles of that are but to be notified — from a number of state courts throughout the nation. Nevertheless, the highest courtroom has but to start listening to the matter.
“That is each a disappointment and a tough final result. However I select to look on the intense facet: the learnings are invaluable, and my conviction for what’s subsequent is even stronger,” Mittal wrote.
