Hike, the former unicorn startup, has officially shuttered its real-money gaming operations as the Indian government intensifies its regulatory scrutiny over the sector.
VC Firms Demand Accountability
Venture capital firms backing similar startups are now questioning founders regarding whether early warning signs of regulatory intervention were ignored. Sources familiar with these private discussions told TechCrunch that investors are probing why proactive measures were not taken to mitigate the potential impact of these legislative shifts.
Supreme Court Intervention
Earlier this week, the Indian Supreme Court transferred all petitions challenging the new online gaming law to its own docket. While the specific rules of this legislation have yet to be officially notified, the move to consolidate petitions from various state courts marks a significant escalation in the legal battle. The Supreme Court has not yet scheduled hearings for the matter.
Founder’s Perspective on the Pivot
Addressing the closure, Kavin Bharti Mittal, the founder of Hike, acknowledged the severity of the situation. “This is both a disappointment and a hard outcome. But I choose to look on the bright side: the learnings are invaluable, and my conviction for what’s next is even stronger,” Mittal wrote.
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