Hike, once a unicorn, shuts down as India cracks down on real-money gaming

Hike, once celebrated as one of India's prominent unicorn startups, has succumbed to the recent crackdown on real-money gaming imposed by the Indian government. Led by Kavin Bharti Mittal, son of Airtel's founder, the company has decided to shut its operations following a significant policy shift in New Delhi. On Saturday, Mittal revealed that the startup's U.S. venture, which commenced just nine months ago, had shown promising growth. However, he noted that expanding this business globally would necessitate a considerable overhaul that would not be an efficient use of resources. Originally launched in 2012 as a messaging app to rival WhatsApp, Hike transitioned to real-money gaming in recent years, particularly through its platform Rush, which offered popular games like carrom and ludo for cash prizes. Despite the shutdown of Hike Messenger in 2021, Rush managed to attract over 10 million users and generated upwards of $500 million in gross revenue during its four-year existence. Hike had garnered investments from major players like Tiger Global, SoftBank, and Tencent, reflecting its early ambitions to compete in the messaging space. The startup achieved a valuation of $1.4 billion back in 2016. In a candid Substack post, Mittal expressed his reservations about further investment in the face of regulatory challenges, stating, "For the first time in 13 years, my answer is no. Not for me, not for my team, and not for our investors." The Indian government's recent enactment of the Promotion and Regulation of Online Gaming Act, 2025, has sent shockwaves through the $23-billion real-money gaming sector, instituting a blanket ban on such platforms. The government justified this decision by citing concerns over gambling-related harm, including tragic reports of individuals taking their own lives after substantial losses. In light of the new regulations, major industry players such as Dream Sports and Mobile Premier League (MPL) have begun to dismantle their real-money gaming operations in India. Some are pivoting towards alternate ventures like micro-dramas and financial services, while others are seeking opportunities in international markets. This crackdown has also led to significant layoffs, with an estimated 2,000 jobs lost across various companies, including Games24x7 and Zupee. Reports indicate that some firms are considering reducing their workforce by as much as 90% as they navigate these turbulent waters. Investors have begun scrutinizing startup founders on whether they anticipated such regulatory changes and why they did not take preventive measures. Earlier this week, the Indian Supreme Court consolidated multiple petitions contesting the new law, transferring them from various state courts. However, hearings on the matter have yet to commence. Mittal reflected on the situation, acknowledging the disappointment but also emphasizing the invaluable lessons learned and a renewed conviction for future endeavors.