CrickPe, the first product of Ashneer Grover’s startup Third Unicorn, has halted operations within a couple of years of its launch. Despite its revolutionary concept in which players would be paid out of the game pot, the fantasy cricket platform was unable to attract the necessary users.
Grover, who is known for making bold business moves and having sharp views into the industry, had originally set up CrickPe as a competitor to Dream11 and My11Circle, which are big names in fantasy sports. But exorbitant taxes, legal obstacles, and business model problems drove him to close the site before it could become very popular.
Why Did Ashneer Grover Shut Down CrickPe?
Grover pointed to multiple reasons behind the decision:
- The 28% GST on real-money games had a big effect on profit margins and made the business unsustainable.
- Business model feasibility issues, particularly in incentivizing cricketers from the game pot, which was CrickPe’s unique selling point.
- Tough competition from well-established industry leaders, making it challenging to acquire and retain users.
- Negative public opinion since fantasy gaming in India is sometimes confused with gambling, which creates possible legal hazards and customer reluctance.
Confirming the shutdown, Grover stated:
“CrickPe has been halted end 2024 as we are not keen on the space given misplaced connotation of gambling with gaming in India and imposition of 28% GST last year. We had great fun with the space but feel it’s best for incumbents like Dream11 and others and the economics of the business does not have scope for incentivising the cricketers out of the game pot – which was our initial idea.”
Even though CrickPe shut down, Grover’s journey as an entrepreneur is far from over. His new focus is on fintech with ZeroPe, a lending tech company that helps people get loans for medical bills.
Third Unicorn Now Focused on Lending Tech with ZeroPe
Since fantasy sports are becoming more controlled and competitive, Grover has moved on to a business that has a lot of room to grow: healthcare financing.
ZeroPe is Third Unicorn’s newest product. It’s a lending tech tool that helps people get loans for medical treatment. Grover is making a big strategic change by moving into a growing market for financial services. This is especially true in India, where middle-class families often can’t handle their medical bills.
The Indian market for healthcare financing is growing very quickly. To help people who might not be able to get standard loans, fintech companies are using AI-driven underwriting and digital lending models. Grover wants to take advantage of this chance with ZeroPe and become a player in the medical loans market.
The Impact of 28% GST on Gaming Startups
India’s new tax rules on online games were one of the main reasons why CrickPe went out of business. The GST Council stated in July 2023 that online gaming companies would have to pay a 28% tax. This would cut their profit margins by a lot and make it harder for them to offer users good deals.
Several prominent figures in the sector have voiced their disapproval of the change, claiming that the current taxing mechanism fails to differentiate between skill-based and chance-based games. Because of this, a lot of new businesses have gone out of business or decided to stop dealing with real money games altogether.
One of the most high-profile departures from India’s online gaming industry in recent years, CrickPe’s demise highlights the difficulties smaller companies encounter when trying to compete with market leaders in the face of intense regulatory oversight.
What’s Next for Ashneer Grover?
Even if CrickPe has shut down, Grover is still known as a daring entrepreneur who starts innovative businesses. Industry experts are interested in seeing if ZeroPe’s lending tech platform can have a bigger effect than his fantasy game venture.
Given the rising demand for alternative financing options and medical loans in India, ZeroPe has the potential to be his next big success story, as his track record indicates that he thrives in competitive sectors.
Also Read: India’s Business Growth: 28 Lakh Firms, 65% Active, 16,781 New Companies in January 2025
