Hike, which was once among India’s most highly valued unicorn startups, has now become one of the victims of New Delhi’s recent prohibition on real-money gaming. The company, led by Kavin Bharti Mittal, son of Airtel’s founder Sunil Bharti Mittal, is shutting its doors.
On Saturday, Mittal, the founder of Hike (shown above), shared that the company’s U.S. division, launched just nine months ago, had enjoyed a promising beginning. However, he added that to expand internationally would require a complete overhaul, which he felt was neither the best allocation of time nor resources.
Hike originally entered the market in 2012 as a messaging service competing with WhatsApp. In recent years, it shifted its focus to real-money gaming, launching its main platform, Rush, which featured cash-prize games such as carrom and ludo after Hike Messenger shut down in 2021. According to Mittal, Rush drew over 10 million users and achieved more than $500 million in gross revenue during its four-year span.
Renowned investors such as Tiger Global, SoftBank, and Tencent supported Hike’s initial goal of challenging WhatsApp with a messaging app aimed at younger audiences. The company reached a valuation of $1.4 billion in 2016.
“We are capable of raising funds, but the core issue remains: is it worthwhile?” Mittal reflected in a Substack article. “After 13 years, for the first time, my response is no—not for myself, my team, or our investors.”
Last month, India’s government stunned the $23-billion real-money gaming sector by enacting the Promotion and Regulation of Online Gaming Act, 2025, which completely bans these platforms. Officials stated the move was designed to address issues such as reported suicides linked to financial losses in such games.
This led major firms in the industry, including Dream Sports and Mobile Premier League (MPL), to close their real-money gaming businesses in India. While some have shifted to new areas such as micro-dramas and finance, others are exploring overseas markets to maintain parts of their gaming operations.
The regulatory crackdown has also resulted in significant layoffs, with approximately 2,000 jobs lost at companies like Games24x7, Head Digital Works, MPL, and Zupee. Some plan to reduce up to 90% of their staff as they adjust or withdraw from the sector, according to sources who spoke to TechCrunch.
Venture capitalists backing these companies have reportedly questioned founders about whether there were early indications of regulatory changes—and, if so, why they failed to take action to soften the impact, sources told TechCrunch.
Earlier this week, India’s Supreme Court consolidated all challenges to the new law—which has yet to be formally implemented—from various state courts across the nation. The top court, however, has not yet commenced hearings on the issue.
“While this is disappointing and difficult, I choose to focus on the positives: the lessons gained are significant, and my belief in what lies ahead is even greater,” Mittal wrote.
