As sweeping regulations hit a $23B industry, Kavin Bharti Mittal’s Hike becomes the latest startup to fold — ending a 13-year journey from messaging to gaming
A Unicorn No More: Hike Shuts Down Amid Regulatory Whiplash
Hike, once one of India’s most valuable tech startups, is shutting down. The decision comes as a direct result of India’s new blanket ban on real-money gaming, a sector that Hike had pivoted into after abandoning its original ambition of building a WhatsApp rival.
- Founded in 2012 by Kavin Bharti Mittal, son of Airtel’s founder, Hike once carried a $1.4 billion valuation.
- Hike transitioned from messaging to real-money gaming via its platform Rush, which featured casual cash-based games like carrom and ludo.
- Rush had over 10 million users and drove $500 million in gross revenue over four years.
But the government’s recent crackdown effectively killed its business in India.
The Government Ban That Changed Everything
In August 2025, the Indian government enacted the Promotion and Regulation of Online Gaming Act, banning all real-money gaming platforms.
- Officials cited concerns over addiction, financial distress, and suicides linked to gaming losses.
- The move instantly disrupted India’s $23 billion real-money gaming industry.
- Top players like Dream Sports, MPL, and others began shutting down Indian operations or pivoting to non-gaming ventures.
“We could raise the capital… but is this a climb worth pivoting for? My answer is no,” said Mittal in a Substack post announcing the closure.
A U.S. Expansion, Now Also Abandoned
Hike had recently launched a U.S. version of Rush, showing promising early traction. But even that operation is winding down.
- Scaling globally would require a “full recap” and strategic reset, which Mittal says isn’t the best use of time or capital.
- This is the first time in 13 years that Mittal has decided not to push forward with a pivot.
Despite the loss, he framed the experience as a learning milestone, hinting at future ventures.
A Broader Collapse: Industry Layoffs and Investor Shock
Hike’s closure is part of a larger industry unraveling in India:
- Over 2,000 layoffs have already occurred across major gaming startups like Games24x7, Head Digital Works, Zupee, and MPL.
- Some firms are cutting up to 90% of their staff to survive or rebrand.
- VCs are reportedly questioning founders about their lack of preparation for the regulatory storm.
Meanwhile, the Indian Supreme Court has consolidated multiple legal petitions against the law but has yet to begin hearings.
A 13-Year Journey: From Messaging App to Shutdown
Hike’s rise and fall encapsulates the volatile trajectory of Indian tech startups:
- It began as a youth-focused alternative to WhatsApp, earning early backing from SoftBank, Tencent, and Tiger Global.
- When messaging failed to scale, the company pivoted to real-money gaming in a space flush with capital and user interest.
- The regulatory collapse has now forced a full shutdown, even as the founder remains optimistic about what’s next.
“This is both a disappointment and a hard outcome. But the learnings are invaluable,” Mittal wrote.
Hike, once a $1.4B Indian unicorn, is shutting down following India’s ban on real-money gaming. Despite generating $500M in gross revenue through its platform Rush, the regulatory crackdown forced founder Kavin Bharti Mittal to abandon operations in both India and the U.S., marking a somber end to a 13-year journey.
