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Hike Shuts Down: Kavin Mittal on a ‘Difficult Decision’ Amidst Gaming Ban

September 15, 2025
in Business
Reading Time: 4 min

Kavin Mittal, the visionary founder of Hike, has officially announced the complete shutdown of his 13-year-old startup. He explained that while Hike’s U.S. operations were showing promising early results, expanding globally in the wake of India’s ban on real-money online gaming would necessitate a ‘complete reset’ – a move he deemed neither the best use of capital nor time.

In a heartfelt LinkedIn post, Mittal, a prominent entrepreneur and scion of the Bharti Group, candidly questioned whether pursuing further funding for a strategic pivot was truly beneficial. His conclusion was unequivocal: it wasn’t worth the effort for himself, his dedicated team, or their investors.

“Following extensive discussions with our investors and team, I’ve made the incredibly difficult decision to completely wind down Hike,” he shared in his statement.

He elaborated that Hike’s U.S. division, despite launching just nine months prior to a strong reception, faced an insurmountable challenge. ‘After the India ban, scaling globally would require a full recapitalization and a fundamental reset, which is simply not the optimal use of our capital or time,’ Mittal stated.

He posed a crucial question: ‘We could raise the capital, but the real question is: is it worth it? Is this a climb worth pivoting for?’ He revealed that for the first time in 13 years, his answer was a resounding ‘No’ – not for him, his team, or their investors.

Detailing the reasons behind his decision, Mittal emphasized that real-money gaming was never the ultimate goal for Hike. Instead, it was initially a strategic avenue to assess unit economics and user engagement in India, all while working towards a much broader vision.

The landscape for real-money online gaming in India suffered a critical blow with the passage of the Promotion and Regulation of Online Gaming Bill, 2025. This new legislation prohibits all forms of online money games, though it aims to support the growth of e-sports and online social gaming.

Now officially an Act after receiving presidential assent, the law is designed to combat growing concerns over addiction, money laundering, and financial fraud associated with these applications. In response to its parliamentary approval, major online gaming platforms like Dream11, My11Circle, WinZO, Zupee, and Nazara Technologies-backed PokerBaazi have already ceased their real-money gaming services.

Mittal reflected in his LinkedIn post that, in hindsight, establishing the company in India inadvertently constrained them to a specific business model and exposed them to unforeseen regulatory challenges, effectively transforming a temporary strategy into a more permanent, restrictive path.

“The vision for a ‘Gaming Nation’ is still valid, but perhaps we were simply too early,” he mused.

He believes the global gaming and Web3 landscape will eventually evolve towards a ‘Nation-type’ model, which he referred to as ‘Company 2.0.’ However, he highlighted that cryptocurrency regulations worldwide are still nascent, and he wanted to avoid a repeat of the Indian experience, where clarity on regulations remained elusive.

Even considering a complete overhaul, he pondered, ‘Is this where I’d choose to invest my own capital and energy today?’

“For the first time, the answer is no,” he stated firmly. “The world has transformed over the past decade, and so have I. There are now more critical problems to address and even greater opportunities to allocate brilliant talent and capital.” He promised that his next venture would be distinctly different from Hike’s journey.

Mittal described the past 13 years as ‘immense,’ proudly noting that Hike Messenger had once achieved an impressive 40 million monthly active users.

He also highlighted the success of Rush, a casual PvP gaming platform they developed, which rapidly scaled to 10 million users and generated over $500 million in gross revenue within just four years. ‘Our execution was outstanding, but we struggled to achieve lasting traction,’ he admitted.

Throughout Hike’s journey, Mittal learned crucial lessons, advising, ‘Be cautious with winner-take-all markets… and don’t design solutions solely for current limitations.’

He further underscored the critical importance of regulatory clarity.

“Risk is acceptable; uncertainty is not,” he concluded.

Looking to the future, Mittal sees immense potential and new frontiers in Artificial Intelligence and advancements in energy.

“Imagine a future where willpower is boundless, energy is limitless, and intelligence is instantly accessible,” he envisioned. “This is the future I am committed to helping build, and where I will focus my contributions in the coming decades.” He affirmed that his next chapter would be remarkably different from Hike’s.

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