Hike Shuts Down: Impact of India's Gaming Ban
Hike, the instant messaging app that transitioned into a gaming platform, has announced its decision to shut down due to the Indian government's recent ban on real-money gaming. CEO Kavin Mittal shared this news through a blog post, stating that after 13 years, it was not worth pursuing the business any longer. While the decision is disappointing, Mittal remains optimistic about the invaluable lessons learned along the way.
Originally launched in 2012 as a competitor to WhatsApp, Hike quickly gained popularity, reaching over 40 million monthly active users. It became a beloved brand in India, attracting significant investments from firms like Tiger Global and SoftBank. However, after facing tough competition and regulatory hurdles, Hike Messenger was sunset in 2021, which was a major turning point for the company.
The new legislation, the Promotion and Regulation of Online Gaming Act, 2025, prohibits all forms of online money games, citing concerns over addiction and national security. This has led many gaming companies, including Hike, to pivot away from real-money offerings. Industry leaders have shifted focus to safer ventures, such as financial services and casual gaming, which do not involve stakes.
Despite the challenges in India, Hike's US operations started strong, yet Mittal acknowledged the complexities of scaling globally, stating that it would require a complete reset. The company previously launched Rush, a platform for casual games, which saw over 10 million users and generated significant revenue. However, Mittal noted that real-money gaming was never the ultimate goal; it served to test the waters in India.
Reflecting on the future, Mittal advised aspiring entrepreneurs to avoid crowded markets and to seek regulatory clarity early in their ventures. He believes that the gaming industry is evolving, with potential shifts towards more nation-based models in Web3 and crypto. As technology advances, opportunities in AI and energy are emerging, which could redefine the landscape for businesses in India.
In conclusion, Hike's closure serves as a reminder of the regulatory challenges faced by startups in India. As the industry adapts, the emphasis will likely shift towards innovation and compliance to create a sustainable future for online gaming and other tech ventures.
