In a major development for India’s consumer internet and gaming sector, Kavin Mittal, founder and CEO of Hike Messenger, announced the complete closure of the platform after 13 years. The decision follows India’s new real-money gaming (RMG) regulations that have disrupted startups and investment opportunities across the sector. Mittal confirmed that Hike’s operations, including its recently launched US business, will be shut down, impacting users, employees, and investors alike.
Founded in 2012, Hike Messenger was once hailed as one of the top Indian messaging apps, positioned as a local alternative to WhatsApp. At its peak, Hike had over 40 million monthly active users and was ranked among the most loved consumer brands in India. The company later pivoted to the gaming industry with its Rush PvP platform, which attracted 10 million users and generated over $500 million in revenue within four years.
However, the government’s real-money gaming ban, coupled with regulatory uncertainty, forced a dramatic cut in Hike’s financial runway, shrinking from seven months to just four. Mittal stated that raising more capital was possible but not the right move in an uncertain environment. The closure comes as India’s online gaming laws face their first legal challenges and scrutiny from investors and entrepreneurs.
The shutdown of Hike highlights the challenges faced by tech startups in India, particularly those operating in high-risk markets with evolving regulations. Mittal’s reflections emphasize the importance of building globally scalable businesses, embracing AI-powered platforms, and ensuring regulatory clarity to sustain innovation and growth.
For more updates on India’s startup ecosystem, gaming industry, and tech investments, stay connected.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.
