Hike Shuts Down Amid India's Real-Money Gaming Ban, Latest Victim of Regulatory Crackdown

Hike, Once a Unicorn, Shuts Down Amid India's Real-Money Gaming Ban New Delhi - Hike, one of India's most valuable startups with unicorn status, has become the latest casualty of New Delhi's recent real-money gaming ban. The company, led by Kavin Bharti Mittal, son of Airtel founder Sunil Bharti Mittal, announced its shutdown on Saturday. According to Mittal, Hike's U.S. business, launched nine months ago, was off to a strong start. However, scaling it globally would require a full recap and reset, which he deemed not the best use of capital or time. Initially launched as an instant messaging app rivaling WhatsApp in 2012, Hike pivoted to real-money gaming in recent years with its primary platform, Rush. Rush offered casual games like carrom and ludo for cash prizes, following the shutdown of Hike Messenger in 2021. The platform attracted over 10 million users and generated more than $500 million in gross revenue over its four-year run, Mittal said. "We could raise the capital, but the real question is: is it worth it? Is this a climb worth pivoting?" Mittal asked in an interview with TechCrunch. Hike's shutdown marks another significant casualty of India's crackdown on real-money gaming. The ban has sent shockwaves through the industry, leaving several startups struggling to stay afloat. Background and Context Hike was valued at $1.4 billion in 2016, backed by storied investors including Tiger Global, SoftBank, and Tencent. The startup was initially launched as a messaging app aimed at taking on WhatsApp with a youth-focused approach. However, Hike's pivot to real-money gaming proved successful, attracting millions of users and generating significant revenue. Rush became one of the most popular platforms in India, offering a range of casual games for cash prizes. Additional Perspectives Industry experts say that Hike's shutdown is a sign of the challenges facing startups in the real-money gaming space. "The ban has created uncertainty and made it difficult for companies to operate," said Rohan Bhansali, founder of online gaming platform, GameOn. However, others argue that the shutdown may be an opportunity for Hike to re-evaluate its business model and adapt to changing regulations. "This is a chance for the company to pivot and focus on other areas," said Anirudh Singh, managing director at venture capital firm, Orios Venture Partners. Current Status and Next Developments Hike's shutdown marks another significant development in India's crackdown on real-money gaming. The ban has left several startups struggling to stay afloat, raising questions about the future of the industry. As the situation continues to unfold, it remains to be seen how other companies will adapt to the changing regulations. One thing is certain: Hike's shutdown serves as a reminder of the challenges facing startups in India's rapidly evolving tech landscape. Attribution: Kavin Bharti Mittal, founder and CEO of Hike Rohan Bhansali, founder of GameOn Anirudh Singh, managing director at Orios Venture Partners *Reporting by Techcrunch.*