In a note shared on Saturday, Mittal (pictured above) said that Hike’s U.S. venture, launched just nine months ago, had “kicked off to a strong start.” But he admitted that scaling it globally would require a “complete restart and massive reset — neither an optimal use of capital nor of time.”
Originally launched in 2012 as a WhatsApp rival, Hike was a messaging app aimed at India’s youth. In recent years, the startup shifted its focus toward real-money gaming after shutting down Hike Messenger in 2021. Its flagship gaming platform, Rush, offered casual titles like carrom and ludo with cash rewards. According to Mittal, Rush attracted over 10 million users and generated more than $500 million in cumulative revenue during its four-year run.
Hike’s early ambitions had once rallied a lineup of powerhouse backers — including Tiger Global, SoftBank, and Tencent — who bet on the startup’s potential to compete head-to-head with WhatsApp. By 2016, Hike had reached a valuation of $1.4 billion.
“We could raise more money,” Mittal wrote in a Substack post, “but the real question is: is the climb worth it? For the first time in 13 years, my answer is no — not for me, not for my team, not for our investors.”
Last month, the Indian government sent shockwaves through the country’s $23 billion real-money gaming sector by enacting the Online Gaming (Promotion and Regulation) Act, 2025, which imposes a blanket ban on such platforms. Officials said the law aims to curb social harms, including cases where individuals allegedly took their own lives after losing large sums in these games.
Following the ban, industry leaders like Dream Sports and Mobile Premier League (MPL) began winding down their real-money gaming operations in India. Some firms pivoted toward micro-dramas or fintech ventures, while others explored overseas markets to keep their gaming businesses alive.
The crackdown has also unleashed a wave of layoffs. Companies such as Games24x7, Head Digital Works, MPL, and Zupee have collectively cut nearly 2,000 jobs — with some reportedly reducing their workforce by up to 90% as they either scale back or exit the space altogether.
Several venture capital firms backing these startups have privately questioned founders on whether they saw the regulatory storm coming — and, if so, why no preemptive measures were taken to soften the blow.
Earlier this week, the Indian Supreme Court transferred all challenges to the new law — previously scattered across multiple state courts — into a single consolidated case. However, the top court has yet to begin formal hearings.
“This outcome is both disappointing and difficult,” Mittal concluded. “But I choose to focus on the bright side: the lessons are priceless, and my conviction about what lies ahead has only grown stronger.”
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