Launched approximately 13 years ago, Hike was a popular messaging app in India, considered a major competitor to WhatsApp. However, the company's financial situation was impacted by the ban on real money gaming in India and tax regulations. Ultimately, Hike decided to shut down all its operations and planned to distribute the remaining funds to employees and investors.
Hike App: Hike, which had a presence in India and the US and was once considered a primary competitor to WhatsApp, has now completely shut down. This messaging and gaming platform, operating in the US and India, took this step due to financial pressure and the ban on real money gaming in India. The company's remaining $4 million will first be used for employee severance payments, and the rest will be returned to investors. Hike's founder, Kavin Mittal, clarified that tax and regulatory challenges altered the company's direction, making its closure inevitable.
Hike's Journey and Initial Success
Launched approximately 13 years ago, Hike was a prominent messaging app in India, considered WhatsApp's biggest competitor. It was founded by Kavin Mittal and was particularly popular among the youth in its early days. However, over time, Hike couldn't compete with WhatsApp. Subsequently, the company changed its strategy, focusing on the gaming sector and launching a new platform called Rush.
Impact of Regulations and Bans in India
Kavin Mittal informed investors in an email that the ban on real money gaming in India affected Hike's future. The company could have operated with its available funds for about seven months, but due to new regulations and tax policies, this period was reduced to just four months.
US Business Also Affected
Hike had launched a new business in the US and was seeing good results there. However, the ban in India severely impacted the company's financial situation. Under these circumstances, it was no longer feasible to continue operations in the US, and Hike decided to shut down all its operations completely.
Distribution of Funds and Message to Investors
Currently, Hike has approximately $4 million remaining. The company has announced that this amount will first be used for vendor payments and employee severance packages. If anything remains after that, the remaining funds will be returned to investors.
Kavin Mittal's Statement
Kavin Mittal stated that Hike found itself in a situation it did not wish to be in. According to him, real money gaming was just a path, not the destination. Tax and regulatory challenges in India changed the company's direction, ultimately leading to Hike's closure.
