Hike’s Shutdown Signals a Major Shift in India’s Real-Money Gaming Industry
Once hailed as one of india’s standout unicorn startups, Hike has now ceased its operations following the government’s complete ban on real-money gaming platforms. Led by Kavin Bharti Mittal, son of telecom tycoon sunil Bharti Mittal, the company faced overwhelming regulatory hurdles that ultimately forced its closure.
From Messaging pioneer to Gaming innovator
Hike began its journey in 2012 as an instant messaging app aiming to rival WhatsApp. However, after discontinuing its messaging service in 2021 due to intense competition adn shifting user preferences, it reinvented itself by entering the real-money gaming arena with its flagship app Rush. This platform offered casual games like carrom and ludo where players coudl compete for cash rewards. Over four years, rush attracted over 10 million users and generated more than $500 million in gross revenue.
Strong Investor support and Early Growth Trajectory
The startup secured significant investments from global giants such as Tiger Global, SoftBank, and Tencent during its initial phase when it targeted young users with a fresh interaction experience. At its peak valuation around 2016, Hike was valued at approximately $1.4 billion.
The New Regulatory Habitat Reshaping Real-Money Gaming
The Indian government recently enacted the Promotion and Regulation of Online Gaming Act, 2025-a sweeping law that bans real-money gaming platforms across the country. This legislation aims to address social concerns linked to these games; alarming reports have connected financial losses from such platforms to tragic outcomes including suicides.
This policy shift has sent ripples thru India’s burgeoning $23-billion real-money gaming market. Leading companies like Dream Sports and Mobile Premier League (MPL) have either halted their domestic operations or pivoted towards choice ventures such as micro-dramas or fintech services beyond customary gaming formats.
Widespread Job Losses Impacting Industry Workforce
The crackdown triggered massive layoffs throughout this sector-approximately 2,000 employees lost jobs at firms including Games24x7, Head Digital Works, MPL, and zupee. Some organizations are reportedly planning workforce reductions up to 90% amid restructuring efforts or complete market exits.
Leadership Perspectives Amidst Uncertainty
Kavin Bharti Mittal reflected on Hike’s recent U.S.-based expansion launched nine months ago: while early traction was promising internationally, scaling globally would require considerable capital investment-a strategy deemed unfeasible under current regulatory constraints.
“We had options for fundraising,” he stated; “but is pursuing this uphill battle worthwhile? For me personally-and for my team and investors-the answer is no.”
This viewpoint highlights broader concerns among venture capitalists questioning whether startups anticipated regulatory risks sooner-and why proactive risk management strategies were not implemented earlier.
legal Challenges Await Resolution
The Supreme Court of India has consolidated all petitions contesting the new online gaming law from various states but hearings have yet to begin-leaving industry participants in limbo regarding future legal clarity and operational guidelines.
Global Parallels & Strategic takeaways for Emerging Tech Sectors
This advancement serves as a cautionary example about navigating rapidly changing regulations within emerging technology markets worldwide. Comparable situations have occurred elsewhere-as an example, South Korea’s strict restrictions on loot boxes , which forced game developers targeting that region to overhaul monetization models almost overnight.
Kavin Bharti Mittal remains hopeful despite setbacks: “While disappointing,” he says,”the lessons learned provide invaluable insight fueling our next ventures.” His determination embodies an entrepreneurial mindset ready to adapt beyond present limitations toward fresh global opportunities.
