Hike Startup Shuts Down After India Imposes Real Money Gaming Ban

Hike, which was once touted as being among India's most ambitious and worthy startups, has now emerged as the latest high-profile victim of the Indian government's blanket real-money gaming ban. Founded by Kavin Bharti Mittal, son of Airtel founder Sunil Bharti Mittal, Hike has announced its total shut-down in the wake of a regulatory upheaval that has turned the entire $23-billion real-money gaming sector on its head.

From Messaging App to Gaming Platform

Founded in 2012, Hike initially joined the Indian technology ecosystem as an instant messaging app, vying to become a viable alternative to WhatsApp. The platform aimed to offer a youth-oriented experience, supported by significant funding from international technology giants like Tiger Global, SoftBank, and Tencent. By 2016, Hike's rapid expansion strategy had brought it the unicorn status with a valuation of $1.4 billion at its peak.

But while it showed great promise early on, Hike found it difficult to hold its ground in the more and more crowded messaging market. In 2021, Hike closed down Hike Messenger and shifted its attention to real-money gaming a nascent but rapidly growing market in India at the time. Its homegrown platform, Rush, enabled users to play popular games like carrom and ludo for real money rewards, rapidly gaining over 10 million users and recording over $500 million in gross revenue in four years.

The Real-Money Gaming Ban

In a sudden shock move last month, the Indian government tabled the Promotion and Regulation of Online Gaming Act, 2025, which in effect banished all real-money gaming sites in India with a blanket prohibition. The move was aimed at addressing rising fears about the social ill caused by such games, particularly after several incidents when players were reported to have lost life savings and even committed suicide.

The blanket ban shook the industry to its core. Top players like Dream Sports and Mobile Premier League (MPL) reacted by closing down their Indian real-money gaming businesses. While some companies started shifting gears towards micro-dramas and financial services, others looked overseas in an attempt to keep their businesses alive. The collapse of the industry also meant massive layoffs, with estimates suggesting up to 2,000 job cuts in major players such as Games24x7, Head Digital Works, MPL, and Zupee. Some businesses were even compelled to contemplate up to 90% workforce reduction.

Kavin Bharti Mittal's Difficult Choice

In a candid Substack post, Hike founder Kavin Bharti Mittal wrote his thoughts about the shutdown. He admitted Hike's American business, which was opened just nine months ago, had promise and had "a strong start." Global scaling, though, would take a pricey "recap and reset," something he did not think it worth the time and money.

We can raise the capital, but the question is: is it worth it? Is this a hill worth pivoting?" Mittal thought. "For the first time in 13 years, my answer is no. Not for me, not for my team, and not for our investors."

Mittal reiterated the lesson to be learned from the experience, showing hope for other ventures in the future even though closing up was frustrating.

Industry-Wide Implications and Future Outlook

The Indian Supreme Court recently consolidated all petitions against the new gaming law from different state courts to itself, although hearings have yet to commence. In the meantime, a number of VC firms that are backing these startups are said to be interrogating their founders regarding early warning signs and strategic readiness in anticipation of the crackdown.

The regulatory chaos has not only resulted in Hike shutting down but also set off an important watershed for India's online gaming sector. Experts feel the ban will re-engineer the startup system, compelling firms to innovate or get out of the business.

Although the immediate future appears bleak, the long-term effect may propel the industry towards more sustainable, regulated, and responsible business practices. Entrepreneurs such as Kavin Bharti Mittal are optimistic, learning some invaluable lessons along the way.