Ashneer Grover Shuts Down CrickPe, Know Why?
Ashneer Grover, the co-founder of BharatPe, has recently shut down his fantasy cricket platform, CrickPe, citing unsustainable margins, regulatory obstacles, and competition from established players. The news has sent shockwaves through the startup ecosystem, raising questions about the viability of the fantasy sports sector in India.
CrickPe, launched in 2020, was a unique platform that allowed users to compete against each other by creating fantasy teams and predicting the outcome of cricket matches. The platform used game pot funds to incentivize players, which proved to be a major challenge in the long run.
The Unfeasible Model
The game pot fund model, where players contributed a portion of their winnings to the pot, was intended to create a sense of community and excitement among users. However, the model was unsustainable in the long run, as it was perceived as gambling by many users. This perception led to regulatory hurdles, making it difficult for CrickPe to operate smoothly.
In an interview with Ascendants, Grover revealed that the company was facing significant challenges due to the 28% Goods and Services Tax (GST) on fantasy sports platforms. “The GST was a major challenge for us. We were struggling to make ends meet, and it was unsustainable to continue operations,” he said.
Regulatory Obstacles
CrickPe faced numerous regulatory obstacles, which further complicated its operations. The company was forced to comply with multiple regulations, including those related to gambling, taxation, and data privacy. The complex regulatory landscape made it difficult for CrickPe to scale its operations and attract new users.
Competition from Established Players
The fantasy sports sector in India is highly competitive, with established players like Dream11 and FanFight dominating the market. CrickPe struggled to compete with these players, who had a significant head start in terms of branding, marketing, and user acquisition.
The Pivot to Fintech
In light of the challenges faced by CrickPe, Grover has decided to pivot to the fintech sector with ZeroPe, a medical loan solutions platform in India’s healthcare sector. ZeroPe aims to provide instant medical loans to patients, which will be repaid through a fixed percentage of their future income.
Grover believes that the fintech sector offers a more sustainable and scalable business model. “Fintech is a more stable and scalable sector, and we believe that ZeroPe can make a significant impact in the healthcare sector,” he said.
Lessons Learned
The shutdown of CrickPe serves as a valuable lesson for startups in the fantasy sports sector. While the sector has the potential to be highly profitable, it is essential to consider the regulatory and competitive landscape before launching a new platform.
Grover believes that the experience gained from CrickPe will be valuable in his new venture, ZeroPe. “We learned a lot from our experience with CrickPe, and we will apply those lessons to ZeroPe. We are excited to enter the fintech sector and make a positive impact in the healthcare sector,” he said.
Conclusion
The shutdown of CrickPe is a significant development in the Indian startup ecosystem. While the fantasy sports sector has its challenges, Grover’s decision to pivot to fintech demonstrates the importance of adapting to changing circumstances.
ZeroPe, Grover’s new venture, has the potential to make a significant impact in the healthcare sector. With a focus on providing instant medical loans to patients, ZeroPe aims to address a pressing need in the healthcare sector.
As Grover navigates the fintech sector, he will undoubtedly draw on the lessons learned from CrickPe. The shutdown of CrickPe serves as a reminder of the importance of careful planning, regulatory compliance, and market analysis in the startup ecosystem.
Source:
https://ascendants.in/industry/ashneer-grover-crickpe-zerope/
