After 13 years of building products, pivoting, and scaling, Kavin Bharti Mittal has decided to wind down Hike completely. The startup, once known for its messaging app, had shifted to gaming (Rush) and global expansion, but India’s ban on real-money gaming (RMG) coupled with regulatory and capital constraints has made continuation unviable.
Decision to Shut Down & Key Reasons
- The shutdown includes all operations globally, not just in India. The recently launched U.S. business will also cease.
- Mittal cited India’s Real-Money Gaming ban as the main trigger—and said it reduced the company’s financial runway from seven months to just four months.
- Scaling globally would have required massive recapitalisation, which he feels would not be the best use of time or investor capital.
The Journey: Messaging → Gaming → Regulatory Headwinds
| Phase | What Happened |
|---|---|
| Messaging-App Era | Hike started as a messaging service competing with WhatsApp. It once reached ~40 million monthly active users. |
| Shift to Gaming (Rush) | After retiring the messaging app, Hike pivoted to Rush—a real-money gaming platform, integrating Web3, play-to-earn, etc. It scaled to 10 million users and generated ~$500 million in gross revenue over 4 years. |
| Regulatory & Market Challenges | Increased taxes, ambiguity around RMG regulations, and the blanket ban in India on online games involving money made operations difficult. |
What Happens Next & Stakeholder Impact
- Hike has approx US$4 million left on its balance sheet. These funds will be first used for vendor obligations and employee severance; any leftover will be returned to investors.
- All employees, including those in India and international locations, are impacted. The decision reflects “fatigue” after years of pivots and regulatory hurdles.
- For investors, this marks the end of the Hike journey while potentially marking a turn toward fresh opportunities. Mittal has indicated interest in focusing on AI, energy, and similar “frontiers.”
Broader Implications
- The case of Hike underscores the importance of regulatory stability for startups, especially in sectors like gaming, fintech, etc. Sudden policy changes can severely impact long-term viability.
- It also shows the difficulty of scaling a business globally when one major market (India) faces legal or regulatory headwinds.
- Employee morale, investor expectations, and the cost of pivots are expensive—not just in money but in time, reputation, and opportunity.
Conclusion
Hike’s shutdown after 13 years is a significant moment in India’s startup journey. From being a promising messaging app challenger to building a substantial gaming platform, the company’s evolution reflects both ambition and the hard realities of changing regulations and capital constraints. While the end is here for Hike, Kavin Mittal’s next chapters—likely in AI, energy, or systemic tech innovation—will be closely watched.
