Former Unicorn Hike Shuts Down After India Gaming Ban
Hike, once a titan of the Indian startup ecosystem, is closing its doors. The company, founded by Kavin Bharti Mittal, has become the latest high-profile victim of the Indian government’s aggressive crackdown on the real-money gaming industry.
The decision follows the enactment of the Promotion and Regulation of Online Gaming Act, 2025, last month. This federal legislation imposed a blanket prohibition on real-money gaming platforms, citing severe societal harms, including reports of suicides linked to financial losses within these digital environments.
A Strategic Pivot Ends
Originally rising to prominence in 2012 as a messaging app designed to challenge WhatsApp, Hike underwent a significant transformation after shuttering its messenger service in 2021. The firm pivoted toward real-money gaming, launching the platform Rush. According to Mittal, the app gained traction, drawing over 10 million users and generating more than $500 million in gross revenue throughout its four-year tenure.
Despite the recent launch of a U.S.-based business nine months ago, which Mittal described as having a “strong start,” the founder concluded that global expansion was no longer viable. In a Substack post, Mittal explained that the path forward would require a total reset, which he deemed an inefficient use of time and capital.
The End of a Unicorn Era
At its peak in 2016, Hike commanded a valuation of $1.4 billion, backed by prominent global investors including SoftBank, Tiger Global, and Tencent. Reflecting on the shutdown, Mittal noted that while the company possessed the capacity to raise further capital, the core question remained whether the effort was justified.
“For the first time in 13 years, my answer is no. Not for me, not for my team, and not for our investors,” Mittal wrote.
Broader Industry Fallout
The regulatory shift has sent shockwaves through a sector valued at $23 billion. Major players like Dream Sports and Mobile Premier League (MPL) have been forced to halt operations. The crisis has triggered widespread austerity across the industry, with approximately 2,000 jobs lost at firms such as:
Some companies are attempting to pivot toward sectors like micro-dramas and financial services, while others face workforce reductions of up to 90%. Meanwhile, the legal battle continues; the Indian Supreme Court recently transferred all petitions challenging the new law to itself, though hearings have yet to commence.