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

Hike, once a leading Indian startup, has shut down due to India's new ban on real-money gaming. Founded by Kavin Bharti Mittal, the company pivoted to gaming after discontinuing its messaging app, attracting millions but ultimately halted by regulatory changes aimed at preventing gambling-related harm. The industry is now facing significant layoffs and challenges as companies adapt to the new laws.

Key points

  • Hike was initially a messaging app launched in 2012 but pivoted to real-money gaming with Rush after shutting down its messaging service in 2021.
  • The Indian government implemented the Promotion and Regulation of Online Gaming Act, 2025, banning real-money gaming platforms due to concerns over gambling-related harms.
  • Hike generated over $500 million in revenue and gained over 10 million users, but its global expansion plans became unfeasible due to the ban.
  • CEO Kavin Mittal expressed disappointment, stating that pursuing further investment would not be worth it given the current circumstances.
  • The new laws prompted many gaming companies to shut down operations, leading to approximately 2,000 job losses in the sector as they struggle to adapt.

Why it matters

  • The Indian government’s crackdown reflects a broader global trend of increasing regulation in the online gaming sector, highlighting concerns about gambling addiction and suicide incidents attributed to gaming losses.
  • The startup ecosystem is facing a significant shift as regulations change, reminiscent of how tech companies navigated the impacts of GDPR in Europe.
  • The Layoffs across the industry signify a potential recession in the startup space, similar to past downturns during economic slowdowns and shifts in consumer behavior.

The closure of Hike signals a major reconfiguration of India's online gambling landscape, emphasizing the challenges startups face amid evolving regulations, and could inspire future tech adaptations and solutions in the gaming industry.