In a stunning turn of events, Kavin Bharti Mittal, founder and CEO of Hike, has announced the complete shutdown of his 13-year-old startup. Once hailed as India’s homegrown messaging app rivaling global giants, Hike is now officially closing its doors — leaving millions of users and investors shocked.
The decision comes after the Indian government’s ban on real-money gaming (RMG), a regulatory move that toppled the company’s ambitious gaming pivot. Despite Hike’s US business showing early traction and its Rush gaming platform generating $500 million in revenue from 10 million users, Mittal said continuing operations would require a full recapitalisation — a move he deemed “not the best use of capital or time.”
“We got locked into the Indian market in a tax/regulation battle,” Mittal explained in a heartfelt LinkedIn post. “For the first time in 13 years, my answer is no. Not for me, not for my team, and not for our investors.”
From Messaging Giant to Gaming Powerhouse
Hike’s journey has been nothing short of extraordinary. Founded in 2012, it once boasted over 100 million users and was known for fun features like stickers and local language support. In 2021, Hike Messenger was shut down, marking the company’s pivot into gaming and Web3.
Its two new products — Vibe, a community platform, and Rush, a real-money gaming service — showed massive promise. Rush alone scaled to 10 million users and generated $500 million in revenue over four years. But despite these successes, regulatory hurdles, tax disputes, and now the RMG ban made the business unsustainable.
Employees and Investors First
Mittal assured stakeholders that the remaining $4 million on Hike’s balance sheet will be used to pay vendors and severance to employees, with any leftover funds returned to investors. His transparent approach has been praised in the startup community as a responsible way to wind down operations.
What This Means for India’s Startup Ecosystem
Hike’s closure is a wake-up call for startups navigating high-growth sectors in India. Even with millions of users and hundreds of millions in revenue, regulatory uncertainty can topple even the most innovative companies. Entrepreneurs now face the challenge of balancing growth, compliance, and risk management in a fast-changing environment.
A New Beginning?
Despite the closure, Mittal remains optimistic about the future. “Closing a chapter, opening a new one,” he wrote, hinting at fresh ventures on the horizon. With his experience in scaling products globally, navigating regulations, and pivoting successfully, the founder is likely to make another splash in the tech world.
Hike’s legacy, from a messaging pioneer to a gaming innovator, leaves behind lessons that India’s startup ecosystem will not forget: the power of adaptability, the importance of understanding regulatory landscapes, and the relentless pursuit of innovation.
Whether you loved Hike Messenger, played Rush, or followed its journey from afar, one thing is clear: this is the end of an era — and a bold founder is just getting started.
