Hike, one of India’s earliest unicorn startups that once sought to rival WhatsApp, has officially shut down following India’s blanket ban on real-money gaming (RMG).
The decision marks the end of a 13-year journey for the startup founded by Kavin Bharti Mittal, son of Airtel founder Sunil Bharti Mittal. Once valued at $1.4 billion and backed by global investors including Tiger Global, SoftBank and Tencent, Hike has now become one of the biggest casualties of India’s tightening stance on gaming.
Hike’s entry into web3
Launched in 2012, Hike began as an instant messaging app designed for India’s youth, offering stickers, themes and offline messaging in a bid to localize the WhatsApp experience. At its peak, the app boasted over 40 million monthly active users and ranked among India’s most loved consumer brands.
But when Hike Messenger shut down in 2021, the startup pivoted aggressively. First with Rush, its casual gaming app, and then with a broader Web3 vision, Mittal positioned Hike as a decentralized gaming and social platform.
By 2024, Hike’s products were blending blockchain elements into gaming, exploring token-based economies and experimenting with NFTs and Web3-native monetization.
The regulatory blow
The Promotion and Regulation of Online Gaming Act, 2025 imposed a nationwide ban on all categories of online money games, regardless of whether they were based on skill or chance. Citing addiction, social harm and national security risks, the law effectively dismantled India’s $23-billion RMG industry overnight.
Hike’s flagship platform Rush had amassed 10 million users and generated over $500 million in gross revenue in four years, but the ban made its business model untenable.
Hike goes all-in on U.S. after gaming ban
After shutting down operations in India, Hike founder Mittal confirmed that the company will now focus entirely on the U.S. and global markets.
Mittal explained that India’s regulatory environment made it impossible to continue. “The Government of India has made its position clear: RMG will not be allowed to exist in the country,” he wrote, citing GST hikes and the recent blanket ban on online money gaming.
Mittal said the first warning signs came when India chose not to embrace crypto:
“For years, the promise of Web3 ownership — the very foundation of what we’re building — has remained uncertain here.”
By contrast, he said the U.S. as a far better place to build:
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“The Genius Act for stablecoins has already passed, and the Clarity Act for tokens is on the horizon. Together, they create one of the most exciting environments in the world to build in Web3.”
“Is it worth it?” Mittal asks
In the latest Substack post titled Closing a Chapter, Opening a New One, Mittal admitted that while Hike’s U.S. Web3 business was gaining traction, scaling globally would have required a full reset and recapitalization.
“We could raise the capital, but the real question is: Is it worth it? For the first time in 13 years, my answer is no. Not for me, not for my team, and not for our investors,” Mittal wrote.
He stressed that RMG was never the end goal, only a way to test unit economics in India while working toward a Web3-native gaming nation model.
“In hindsight, starting in India locked us into the model and regulatory headwinds, turning a temporary path into a more permanent one,” he said.
Lessons for Web3 founders
Hike’s rise and fall sends key lessons for India’s Web3 entrepreneurs:
Winner-take-all markets: Competing with global giants like WhatsApp without a regulatory shield was a losing battle.
Regulatory clarity matters: Web3 projects face even more uncertainty; betting on policy shifts can be fatal.
Pivot fatigue: Hike’s multiple resets drained momentum, capital and conviction.
What’s next for Mittal?
In his farewell note, Mittal hinted that his next ventures would focus on three transformative frontiers: artificial intelligence, energy breakthroughs and human self-mastery.
For him, the “Web3 nation” vision remains real — but perhaps too early.
On one hand, India is pushing to regulate crypto and blockchain more formally; on the other, its sweeping bans discourage innovation in adjacent industries like gaming and tokenized rewards.
While firms like Dream11 and MPL pivot to financial services or entertainment, others are eyeing overseas markets where Web3 regulation is clearer.
The climb continues
For Mittal, Hike’s shutdown closes a chapter, but he framed the journey as a stepping stone toward a larger future.