India’s Hike Shuts Down After Real-Money Gaming Ban: Founder Kavin Bharti Mittal Reflects on 13-Year Journey and Future Plans
In a significant development, the real-money gaming sector in India has suffered another blow with Hike, once a prominent startup valued at $1.4 billion, announcing its shutdown. Kavin Bharti Mittal, son of Airtel founder Sunil Bharti Mittal, leads the company.
Saturated by the recent ban on real-money gaming in India, Hike’s U.S. business, launched nine months ago, will cease operations due to insufficient capital and time resources needed for global expansion, according to a statement from Mittal. Initially, a messaging app that rivaled WhatsApp, Hike pivoted to real-money gaming in recent years, with its primary platform, Rush, offering popular games like carrom and ludo for cash prizes after the closure of Hike Messenger in 2021.
Rush garnered over 10 million users and generated more than $500 million in gross revenue during its four-year run, Mittal revealed. The company’s growth was backed by notable investors such as Tiger Global, SoftBank, and Tencent, who initially supported Hike’s ambition to challenge WhatsApp with a youth-focused messaging app.
In light of the Indian government’s recently introduced Promotion and Regulation of Online Gaming Act, 2025, which imposed a comprehensive ban on such platforms, industry leaders including Dream Sports and Mobile Premier League (MPL) started discontinuing their real-money gaming operations in India. Some of these companies have since ventured into new sectors like micro-dramas and financial services or sought opportunities in international markets to sustain parts of their gaming businesses.
The ban has caused widespread layoffs, with approximately 2,000 job losses reported across various companies such as Games24x7, Head Digital Works, MPL, and Zupee. Some of these firms are considering reducing up to 90% of their workforce as they navigate the challenging environment or explore exit strategies.
VC firms backing these startups have questioned their leaders about any early signs of regulatory action and whether adequate measures were taken to mitigate its impact. According to TechCrunch sources, such conversations have been ongoing.
Earlier this week, the Indian Supreme Court consolidated all petitions challenging the new law, yet to be formally notified, from various state courts across the country. However, the top court has yet to begin hearings on the matter.
Mittal expressed optimism in a statement, stating that while the outcome is challenging, the lessons learned are invaluable, and his resolve for future endeavors remains strong.
