Ashneer Grover-backed CrickPe to suspend operations

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Ashneer Grover-led fantasy cricket platform, CrickPe, has ceased operations within two years of its launch. The platform, which was the first product of Grover’s startup Third Unicorn, debuted ahead of the 2023 Indian Premier League (IPL) season but has now stopped rolling out new contests. A message on the CrickPe app confirmed the development, stating, “We’ve had an innings together. While we won’t be rolling out new contests on the app anymore, this is just a timeout.”

CrickPe’s Journey

As reported by Inc 42, Grover, in response to Inc42’s queries, explained that the company decided to step away from the fantasy gaming space due to regulatory challenges and taxation issues. “CrickPe has been halted at the end of 2024 as we are not keen on the space given the connotation of gambling with gaming in India and the imposition of 28% GST last year. We explored the space but feel it’s best for incumbents like Dream11 and others. The business model does not allow for incentivizing cricketers out of the game pot, which was our initial idea,” Grover stated. While no new contests will be available, users can still withdraw their winnings from the app.

A Business Model That Faced Challenges

CrickPe aimed to differentiate itself in the fantasy gaming market by allocating a portion of the winning pool to cricketers and the Board of Control for Cricket in India (BCCI), apart from the users. At the time of its launch, Grover had envisioned a redistribution of the prize pool where INR 80 Cr would go to users, INR 10 Cr would be retained as profit, and INR 10 Cr would be distributed to cricket bodies and cricketers. Despite this vision, CrickPe faced competition from well-established platforms like Dream11, MPL, and My11Circle.

Impact of Taxation on Online Gaming

The decision to shut down CrickPe comes in the wake of the Indian government’s regulatory changes for online real-money gaming. The GST Council introduced a 28% tax on the full face value of bets, effective from October 1, 2023, increasing the tax burden on gaming platforms. Previously, an 18% GST was levied on the platform fee for skill-based games. Grover has been vocal in criticizing the taxation, at one point posting on X (formerly Twitter) that the 28% GST had negatively affected the online gaming industry. Although the Supreme Court recently put a temporary hold on GST proceedings against multiple gaming companies, the industry remains affected by tax notices worth over INR 1 Lakh Cr. The taxation and regulatory concerns appear to have led Third Unicorn to reevaluate its focus and pivot to a different business vertical.

Third Unicorn’s Future: Shifting Focus to Fintech with ZeroPe

With CrickPe winding down, Third Unicorn is now shifting its attention to its fintech platform, ZeroPe, which offers lending services for medical treatments. Grover highlighted ZeroPe’s growth, noting that it has surpassed 1 lakh organic downloads and partnered with over 1,000 hospitals and healthcare providers. The platform has a 4.6-star rating on iOS and Android, reflecting user satisfaction. Through ZeroPe, customers can obtain loans of up to INR 5 Lakh for medical procedures at partner hospitals. The lending operations are backed by Delhi-based NBFC Mukut Finvest. “We are providing EMI options across healthcare providers for treatments in skin, dental, aesthetics, hair implants, and IVF, making these procedures more affordable, especially for those not covered by insurance,” Grover stated.

A Renewed Focus on Fintech

Grover’s move into fintech aligns with the sector’s ongoing expansion in India. The country’s fintech industry has experienced significant growth, driven by increasing smartphone penetration and digital financial services adoption. The lending tech segment, in particular, is expected to grow at a CAGR of 22% between 2024 and 2030, reaching an estimated $1.3 trillion market size. With ZeroPe, Grover is aiming to be part of this growing market. Despite the changes with CrickPe, Third Unicorn appears focused on healthcare financing, leveraging Grover’s experience and market insights. While CrickPe’s journey has ended, Grover’s focus on fintech is now taking centre stage.

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