Hike shuts down after 13 years
What's the story
Hike, the messaging and gaming platform founded by Kavin Mittal, is completely shutting down its operations, including its US business, after 13 years. Mittal communicated the decision to investors via an email on Saturday, according to Entrackr. The move comes in the wake of India's ban on real money gaming (RMG), which has drastically shortened Hike's runway from seven months to just four.
Shutdown rationale
Unexpected decision to shut down
In his email, Mittal said, "After much reflection and speaking with a few of you, I've decided to wind down Hike operations completely." The decision to shut down entirely was unexpected. Just after India's RMG ban, Mittal had announced plans to exit the country and focus on markets like the US, UK, Canada, and Australia.
Business evolution
From messaging to gaming: Hike's transformation
Hike started as a messaging app and later pivoted to Rush, a gaming platform. In four years, it scaled to 10 million users and generated $500 million in gross revenue. However, despite this growth, Mittal cited taxes, regulation battles, and the India ban as challenges that made continuation unviable for the company.
Financial outlook
$4 million left for vendor dues, employee severance
Mittal revealed that Hike has about $4 million remaining on its balance sheet. This will be used to pay off vendor dues and employee severance. Any remaining amount will be returned to investors. He also acknowledged the fatigue within his team after years of pivots and regulatory challenges, saying, "RMG was never the destination."
Reflection
Mittal's plans post-hike shutdown
Looking back at Hike's journey, Mittal highlighted milestones like Hike Messenger hitting 40 million MAUs and becoming one of India's most loved consumer brands. He called the shutdown disappointing but stressed that the learnings from this experience are "invaluable." Going forward, he plans to focus on new frontiers such as AI, energy, and personal growth.