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Instant messaging environments (like Whatsapp, Telegram and Chat activity in OLPC) are popular among children. Simple rule-based games are often played and enjoyed in these environments. Considering these engaging aspects, we built a similar learning environment in our study, to make arithmetic learning fun. This paper shows results of two cycles of ongoing design-based research, using simple rule-based educational games built in instant messaging environment. Fifteen tribal school students (from 3rd and 4th grade) participated in the first cycle, and 21 urban school students (4th grade) participated in the second cycle. At the end of the second cycle, we found that children enjoyed playing games and their arithmetic skills improved significantly (p= 0.0068). This paper also discusses the challenges faced by the researcher during the study, and the strategies designed to tackle these challenges.