India's Gaming Crackdown Claims Hike, Once India's Most Valuable Startup

Hike Shuts Down as India Cracks Down on Real-Money Gaming In a move that marks the latest casualty of New Delhi's recent real-money gaming ban, Hike, once one of India's most valuable startups with unicorn status, has ceased operations. The company, led by Kavin Bharti Mittal, son of Airtel founder Sunil Bharti Mittal, had been struggling to scale its U.S. business despite a strong start. According to Mittal, the decision to shut down was made due to the significant resources required to scale globally, which he deemed not worth the investment. "We could raise the capital, but the real question is: is it worth it? Is this a climb worth pivoting?" Mittal said in an interview on Saturday. Hike's pivot to real-money gaming had been a key strategy in recent years, with its primary platform, Rush, offering casual games like carrom and ludo for cash prizes. Launched after the shutdown of Hike Messenger in 2021, Rush attracted over 10 million users and generated more than $500 million in gross revenue over its four-year run. The company's early ambition was to take on WhatsApp with a youth-focused messaging app, backed by storied investors including Tiger Global, SoftBank, and Tencent. At its peak, Hike was valued at $1.4 billion in 2016. Hike's shutdown marks another blow to India's startup ecosystem, which has been grappling with the implications of New Delhi's real-money gaming ban. The move is seen as a significant setback for the country's tech industry, which had been growing rapidly in recent years. Industry experts say that Hike's shutdown highlights the challenges faced by startups in navigating regulatory environments and adapting to changing market conditions. "This is a wake-up call for Indian startups to be more cautious when it comes to regulatory compliance," said Anirudh Rastogi, founder of Ola-backed law firm Ikigai Law. As the tech industry continues to evolve, Hike's shutdown serves as a reminder of the importance of adaptability and strategic planning in navigating complex regulatory landscapes. With the Indian government set to introduce stricter regulations on online gaming, startups are likely to face increased scrutiny in the coming months. In a statement, Mittal said that the company would be exploring new opportunities in the future, but for now, Hike's shutdown marks the end of an era for one of India's most promising startups. *Reporting by Techcrunch.*