Once one of India’s most valuable unicorn status startups, the hike has become the latest victim of New Delhi’s recent real money game ban led by Kabin Balti Mittal, son of Airtel founder Sunil Balti Mittal.
On Saturday, Hike founder Mittal (pictured above) said the startup’s US business, which started nine months ago, is “officially off to a strong start.” However, he said expanding it globally would require a “complete summary, a reset that is not the best use of capital or time.”
First launched as an instant messaging app comparable to WhatsApp in 2012, and pivoted by real money games in recent years, hiking has been offering casual games like Carilom and Ludo as cash prizes following the closure of Hiking Messenger in 2021.
Renowned investors, including Tiger Global, SoftBank and Tencent, supported their early ambitions to undertake WhatsApp on a young-focused messaging app. The startup was valued at $1.4 billion in 2016.
“We can raise the capital, but the real question is: is it worth it? Is this worth climbing?” Mittal wrote in the Substack Post. “For the first time in 13 years, my answer is no. Not for me, not for the team, not for the investors.”
Last month, the Indian government shocked the $23 billion real money gaming industry by introducing promotion and regulation of the online gaming law of 2025. The federal government said the decision was intended to address cases of harm, including cases in which an individual is allegedly killed by suicide after losing money in these games.
In response, players from top industries, including Dream Sports and Mobile Premier League (MPL), have begun closing their real money gaming business in India. Some began pivoting into new ventures like microdrama and financial services, while others began exploring international markets to keep parts of their gaming business alive.
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The crackdown has caused a wave of layoffs, with around 2,000 unemployment reported among companies such as Games24x7, Head Digital Works, MPL and Zupee. Some of them are planning to cut down up to 90% of their workforce as they try to adapt or leave the space, sources told TechCrunch.
Some VC companies supporting these startups are also questioning the founders about whether there were early signs of regulatory action. If so, a source familiar with the conversation told TechCrunch why no steps were taken to mitigate the impact.
Earlier this week, the Supreme Court of India moved new laws (all petitions from several state courts across the country that have not yet been notified of rules. However, the topcoat has not yet begun to hear the issue.
“This is both a disappointment and a difficult outcome. But I choose to look at the bright side. Learning is incredibly valuable and my belief in the next thing is even stronger,” writes Mittal.
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