Hike’s Shutdown: A Unicorn Falls to India’s Real-Money Gaming Ban
On September 13, 2025, Kavin Bharti Mittal, founder of Hike and son of Bharti Airtel chairman Sunil Bharti Mittal, announced the complete shutdown of the 13-year-old startup, marking the end of a once-promising unicorn that had pivoted from messaging to real-money gaming. In a candid Substack post, Mittal reflected on the decision, stating, “After regrouping with our investors and the team, I’ve made the difficult decision to wind down Hike completely… For the first time in 13 years, my answer is no. Not for me, not for my team, and not for our investors.” The closure follows India’s sweeping ban on real-money gaming (RMG), which has dismantled a $23 billion industry overnight, triggering widespread layoffs and operational halts.
Hike’s Journey: From WhatsApp Challenger to Gaming Casualty
Launched in 2012 as a youth-focused instant messaging app to rival WhatsApp, Hike quickly gained traction with over 100 million users at its peak and secured unicorn status in 2016 with a $1.4 billion valuation. Backed by heavyweights like Tiger Global, SoftBank, Tencent, and Bharti Enterprises (which invested $65 million), the company raised around $261 million in total funding. However, it struggled to compete in messaging and shut down Hike Messenger in January 2021.
The pivot to RMG came soon after, with the launch of Rush—a blockchain-based platform offering 14 casual games like ludo, carrom, and quizzes with cash prizes, integrated Web3 features such as play-to-earn mechanics and user ownership. Rush scaled rapidly, amassing over 5 million players and generating $480 million in annual winnings, with $500 million in gross revenue within four years. Hike also experimented with Vibe, an approval-only community app, but RMG became its core business.
Despite early global ambitions, including a US launch nine months ago showing “strong growth” with 10x higher ARPU and 2x retention compared to India, the Indian ban made further scaling unviable. Mittal noted that starting in India “locked us into the model and regulatory headwinds,” rendering a full global reset too costly.
The Crackdown: India’s Bold Move Against RMG
The catalyst was the Promotion and Regulation of Online Gaming Act, 2025, passed by India’s Parliament in August 2025, imposing a blanket ban on all online games involving monetary stakes. The law, awaiting presidential assent, prohibits RMG platforms, blocks their ads, and bars banks from processing related transactions—aimed at curbing addiction, financial harm, and suicides linked to gaming losses. Prime Minister Narendra Modi’s government cited the sector’s risks, overriding state-level variations and ending debates over skill- vs. chance-based games.
Industry bodies like the Federation of Indian Fantasy Sports warned the ban could drive users to unregulated offshore operators, costing the exchequer $2.5 billion in annual taxes. Critics argue it favors illegal networks while stifling innovation, but supporters, including nCore Games co-founder Vishal Gondal, hail it as a safeguard for youth, redirecting focus to esports and ad-supported casual gaming.
Broader Industry Fallout
Hike’s ~100 employees across India, the US, Dubai, and Singapore—described by Mittal as “SWAT teams”—face immediate job losses, adding to an estimated 2,000 layoffs industry-wide. Other players are scrambling:
| Company | Response to Ban | Impact |
|---|---|---|
| Mobile Premier League (MPL) | Halted all RMG operations; cutting 60% of workforce | Significant downsizing; exploring pivots like micro-dramas |
| Dream Sports (Dream11) | Shutting down RMG services; launching Dream Money (investment tech) | Fantasy cricket apps like Dream Picks halted; sponsorships downgraded |
| Zupee | Suspending operations | Layoffs reported; testing overseas markets |
| Games24x7 (RummyCircle) | Widespread layoffs | Pivoting to free formats |
| WinZO | Exited India RMG; entered US with micro-dramas | Focus on global expansion |
| Probo | Discontinued RMG immediately | Full operational halt |
| Head Digital Works (Junglee Games) | Layoffs and shutdowns | Exploring ad-supported models |
The ban has wiped out valuations, with billions in foreign investment at risk, and shifted sponsorships—especially cricket endorsements—toward non-RMG alternatives. While some firms eye international markets where RMG remains legal, others are betting on IP-driven esports to revive “Make in India” gaming.
Mittal ended on an optimistic note: “The learnings are invaluable, and my conviction for what’s next is even stronger.” As India reshapes its digital landscape, Hike’s story underscores the perils of regulatory whiplash in high-growth sectors.