Hike Closes Operations as India Cracks Down on Real-Money Gaming
Hike, once one of India’s most prominent unicorn startups, has announced its shutdown following the Indian government’s recent ban on real-money gaming platforms. Led by founder Kavin Bharti Mittal, son of Airtel founder Sunil Bharti Mittal, the company cited regulatory hurdles as the primary reason for ceasing operations.
Initially launched in 2012 as a messaging app competing with WhatsApp, Hike shifted its focus to real-money gaming after shutting down its messenger service in 2021. Its flagship gaming platform, Rush, featured casual games such as carrom and ludo, attracting over 10 million users and generating more than $500 million in gross revenue over four years.
Despite backing from high-profile investors like Tiger Global, SoftBank, and Tencent, Hike’s valuation peaked at $1.4 billion in 2016 during its messaging phase. However, the company’s founder recently acknowledged that continuing to scale amid the evolving regulatory landscape was not a prudent use of resources.
Regulatory Shift and Industry Impact
Last month, the Indian government enacted the Promotion and Regulation of Online Gaming Act, 2025, which enforces a blanket ban on real-money gaming platforms nationwide. The legislation aims to mitigate social harms linked to these games, including reports of suicides related to financial losses on such platforms.
This move has sent shockwaves through India’s $23 billion real-money gaming industry, prompting major players like Dream Sports and Mobile Premier League (MPL) to halt their domestic operations. Several companies are pivoting to alternative business models such as micro-dramas and financial services or expanding internationally to sustain their gaming ventures.
Widespread Layoffs and Legal Challenges
The crackdown has triggered significant workforce reductions, with approximately 2,000 layoffs reported across companies including Games24x7, Head Digital Works, MPL, and Zupee. Some firms are considering cuts of up to 90% as they restructure or exit the sector.
Venture capital investors backing these startups have reportedly questioned founders about the absence of proactive measures ahead of the regulatory crackdown, underscoring concerns about risk management in this volatile environment.
Meanwhile, the Indian Supreme Court has consolidated various legal petitions challenging the ban, though hearings have not yet commenced. The final outcome remains uncertain as the government has yet to notify the detailed rules governing the new law.
Founder’s Reflection and Future Outlook
Kavin Bharti Mittal expressed disappointment but emphasized the valuable lessons learned during Hike’s journey. He conveyed a forward-looking stance, indicating strong conviction toward future ventures despite the setback.
As India’s real-money gaming sector undergoes rapid transformation, the industry’s adaptation strategies and regulatory developments will be critical to monitor in the coming months.
FinOracleAI — Market View
The shutdown of Hike following India’s ban on real-money gaming marks a significant disruption in the country’s burgeoning digital gaming market. The immediate impact is negative for gaming startups and investors, given the forced cessation of revenue-generating platforms and widespread layoffs. However, companies pivoting to alternative business lines or international markets may find new growth avenues. Key risks include ongoing regulatory uncertainty and legal challenges, which could influence future policy and market dynamics. Stakeholders should closely watch the Supreme Court’s rulings and government notifications for clearer regulatory direction.
Impact: negative
