Hike, a prominent Indian startup once valued at unicorn status, has recently fallen victim to New Delhi’s ban on real-money gaming. Led by Kavin Bharti Mittal, the company is now ceasing operations, marking the end of its journey.
Founded by Mittal, Hike initially gained traction as a messaging app challenging WhatsApp. However, in recent years, the company shifted its focus to real-money gaming, particularly through its platform Rush. This transition proved successful, attracting millions of users and generating substantial revenue. Notable investors like Tiger Global and SoftBank supported Hike’s vision, valuing the startup at $1.4 billion in 2016.
Despite the potential to secure additional funding, Mittal acknowledged the challenges ahead. With the closure of Rush due to regulatory restrictions, the startup faced a critical decision. The Indian government’s ban on real-money gaming, citing concerns over harmful effects, prompted industry players to rethink their strategies. Major companies like Dream Sports and MPL began exploring alternative ventures to adapt to the changing landscape.
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The industry-wide changes also led to significant job losses, with companies like Games24x7 and MPL announcing layoffs. Some firms are considering reducing their workforce drastically to navigate the evolving regulatory landscape. Amidst these challenges, VC firms supporting these startups have raised questions about early regulatory signals and the lack of preemptive measures to mitigate risks.
Recent developments, including the Supreme Court’s transfer of legal challenges against the new gaming law, have added uncertainty to the industry’s future. Despite the setbacks, Mittal remains optimistic, emphasizing the valuable lessons learned and his unwavering commitment to the next chapter.
