Hike, Once a Challenger to WhatsApp, Shuts Down After 13 Years

Quick Summary

• hike, the messaging app founded by Kavin Mittal 13 years ago, is shutting down permanently.
• Originally launched to rival WhatsApp, Hike shifted its focus to gaming and launched the platform “Rush” after failing to compete as a messaging app.
• Rush gained significant popularity in just four years but suffered a major financial blow due to India’s ban on real money gaming.
• The regulatory change shrunk the company’s financial runway from seven months to four months.
• A promising US-based business arm couldn’t offset losses caused by the ban in India, leading to Hike’s complete shutdown, including its US operations.
• Remaining funds amounting to $4 million will be directed toward vendor payments and employee severance. Any leftover funds will be returned to investors.
• Kavin Mittal expressed frustration over being forced into battling against tax and regulatory challenges in India.

Indian Opinion Analysis

Hike’s story reflects both the challenges of innovation and resilience in adapting business models.emerging as an enterprising competitor against WhatsApp, it later pivoted successfully into gaming before encountering regulatory hurdles that ultimately led to its closure. India’s decision to ban real money gaming had a direct impact not only on online entertainment businesses but also on their operational sustainability. This incident highlights broader questions around policy-making ― notably how sudden regulations can affect entrepreneurial ecosystems. While strategies like diversifying into foreign markets showed foresight from Kavin Mittal’s team, it was not enough against local setbacks.

For India’s tech industry at large, Hike’s shutdown underscores that while ambition and adaptability are crucial for success, predictable policy environments are equally vital for sustaining growth in digital sectors.

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