A significant development has emerged from India’s tech startup ecosystem. Hike, once considered the biggest Indian alternative to WhatsApp, has officially shut down. The announcement was made by the company’s founder and CEO, Kavin Bharti Mittal. This End of Hike Journey marks a reflection on the direction and challenges of the Indian tech startup sector.
The Story of India’s App that Challenged WhatsApp
Hike was launched in 2012, at a time when smartphones and internet penetration were rapidly expanding in India. During this period, Hike emerged as a popular choice among the youth and was seen as the biggest competitor to WhatsApp.
Key features that made Hike popular included group calls with up to 100 participants, a sticker catalog of over 20,000 options, chat protection systems, “friend request”-based chats, and a one-time hidden mode. The app also offered Profile IDs, allowing users to chat without sharing their phone numbers, which was highly valued for privacy.
Additionally, Hike integrated SMS functionality, enabling users to send messages even when offline. The app also offered social features like 48-hour stories, event and reminder setting, bill-splitting tools, and live face filters. These features made Hike extremely popular among the youth, gradually positioning it as the second most-used chat platform after WhatsApp.
Why Hike’s Messaging Platform Shut Down
Hike’s popularity grew rapidly from 2012 to 2019, but the landscape began to shift after 2020. WhatsApp’s network effect, fueled by its vast user base, became so strong that competing became increasingly difficult for Hike.
In 2021, the company formally announced the shutdown of its messaging app. The primary reason was that user preferences had changed, and WhatsApp’s dominance was so entrenched that no new platform could effectively challenge it.
Shift Towards Gaming
After closing its messaging platform, Hike pivoted towards the real money gaming (RMG) sector. The company launched a new platform, Rush by Hike, offering 14 games where users could win cash rewards.
Rush also incorporated modern technologies like Web3 and play-to-earn to make the platform competitive on a global scale. Hike expanded its presence to the U.S., Dubai, and Singapore. Over four years, the company generated $500 million in revenue and attracted over 10 million users—a significant achievement.
Legal Restrictions Hampered Growth
Despite its success, Hike’s gaming vision was short-lived. The Indian government implemented strict regulations on real money gaming. In 2023, legislation was introduced to restrict online cash games, culminating in the passage of the “Promotion and Regulation of Online Gaming Act, 2025.”
Under this new law, all forms of real money games were banned in India. This directly impacted Hike’s business model, cutting off its primary source of revenue. For a company that started in India, this was a major setback.
Financial Pressure and Funding Challenges
The legal restrictions slowed Hike’s growth. Meanwhile, the company faced increasing financial pressure. According to Kavin Bharti Mittal, the company had only four months of funding left, down from a previous buffer of around seven months.
Hike faced a difficult situation as scaling globally required substantial capital. Changing regulations, hesitant investors, and the limitations of a market that originated in India made this nearly impossible.
Support from Major Investors and a New Direction
Hike’s journey saw support from major investors including SoftBank, Tencent, Tiger Global, Foxconn, Polygon, and Tribe Capital.
With Hike’s messaging journey now concluded, Kavin Mittal has revealed that his focus will shift to sectors like Artificial Intelligence (AI), clean energy, and human potential. This signals a fresh phase for Indian technology and innovation in the coming years.
Key Reasons Behind Hike’s Closure
In summary, several key factors contributed to Hike’s shutdown:
- WhatsApp’s massive network effect, leaving little room for competitors.
- Users shifting preferences away from messaging apps to other platforms.
- Strict regulations on real money gaming in India under the “Online Gaming Act 2025,” dismantling the business model.
- Financial pressures and funding constraints limited the company’s growth.
- Scaling the business model from India to global markets proved unfeasible.
Lessons for the Indian Tech Ecosystem
Hike’s journey offers several lessons for India’s tech sector. It demonstrates that India has ample talent and innovation. Hike introduced features that were ahead of WhatsApp. However, WhatsApp’s largest advantage was its massive user base—a challenge Hike could never overcome.
This case also shows that innovation alone is not sufficient. Network effects, user behavior, international competition, and domestic regulations all collectively determine a startup’s success or failure.
Conclusion
The closure of Hike marks the end of an era. It is not just the story of an app but also a reflection of the challenges and opportunities within India’s startup ecosystem. When Hike was launched, it inspired millions of Indians with new possibilities. However, changing times, strict regulations, and intense competition prevented it from sustaining.
Now, all eyes will be on Kavin Mittal and his new initiatives. This End of Hike Journey also raises curiosity about how his next ventures in AI and clean energy will impact both the Indian and global technology ecosystem.
Also Read
- Instagram Reels Overtakes YouTube as India’s No.1 Short Video Platform
- OpenAI’s $500B Stargate Project Boosts India AI Technology
Utkarsh works as a Sub-Editor at 1Tak News. Technology and gadgets are his main beats, and he also tracks automobiles. A graduate of Mahatma Gandhi Kashi Vidyapeeth, he began his journalism career in 2023 and has built experience across digital media platforms like 1Tak. Besides technology, he also has considerable experience covering national affairs, politics, research, and international news.
