Hike, the instant messaging app-turned-gaming platform, is the latest addition to a growing roster of businesses that are winding down after the Indian government effectively banned the real-money gaming (RMG) sector through new legislation.
Kavin Bharti Mittal, the founder of Hike and son of Airtel’s Sunil Bharti Mittal, announced on Saturday that the company will cease all operations.
“We could raise the capital, but the real question is: is it worth it? Is this a climb worth pivoting for? 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 in a blog post. “This is both a disappointment and a hard outcome. But I choose to look on the bright side: the learnings are invaluable, and my conviction for what’s next is even stronger,” he added.
The Promotion and Regulation of Online Gaming Act, 2025, which came into law last month, imposes a blanket ban on all categories of online money games (regardless of whether they are based on skill or chance) while recognising and promoting the development of esports as a legitimate competitive sport, alongside online social games (that may charge subscription fees, provided they do not involve stakes or wagers).
Concerns over addiction and its social fallout have been cited by the Centre as a key factor in its decision to impose the ban on RMG services, alongside national security concerns.
In response to the ban, leading industry players such as Dream11, Winzo, and Zupee pulled the plug on their RMG offerings and are in the middle of pivoting to other lines of business. Some companies are looking to explore international markets like the United States, where a blanket ban on RMG doesn’t exist.
While Hike’s US business, which launched nine months ago, has been off to a strong start, Mittal said (correctly SportzPower believes) that “scaling globally would require a full recap, a reset that is not the best use of capital or time.”
On lessons learnt from the company’s 13-year-run, Mittal urged other entrepreneurs to avoid winner-take-all markets, build for upcoming tech cycles, and seek regulatory clarity early.
“The world will eventually move toward a Nation-type model in gaming and Web3 – Company 2.0. But crypto regulation is still developing globally, and we don’t want to repeat India, where we hoped for clarity that never came,” he said. Mittal also highlighted AI and energy breakthroughs as the next big opportunities.
