CrickPe, the fantasy cricket platform launched by Ashneer Grover’s startup, Third Unicorn, has halted operations within two years of its launch. The app, which debuted ahead of the Indian Premier League (IPL) in 2023, has stopped rolling out new contests.
A message on the CrickPe app reads:
“We’ve had an amazing innings together. While we won’t be rolling out new contests on the app anymore, this is just a timeout.”
However, Grover has hinted that Third Unicorn is shifting its focus to other ventures, moving beyond fantasy gaming.
Why Did CrickPe Shut Down?
The decision to shut down CrickPe stems from two major challenges:
- High Taxation on Online Gaming
- In October 2023, India’s GST Council imposed a 28% tax on the full face value of bets for real-money gaming. Previously, platforms like CrickPe were taxed at a lower 18% on platform fees.
- Grover, a vocal critic of this taxation, had earlier called the 28% GST a “murder” of the online gaming industry in a now-deleted post on X (formerly Twitter).
- This tax hike has led to over ₹1 lakh crore in GST notices to gaming companies, including Dream11, MPL, My11Circle, and Gameskraft.
- Business Model Limitations
- CrickPe differentiated itself from competitors by ensuring that a portion of winnings went to cricketers and the BCCI.
- Initially, Grover was confident that his model would force Dream11 and MPL to adopt similar strategies.
- However, he later admitted that the model was not economically viable, as the platform was unable to incentivize cricketers while maintaining profitability.
Speaking to Inc42, Grover said:
“We had great fun with the space but feel it’s best for incumbents like Dream11. The economics of the business does not have scope for incentivizing cricketers out of the game pot – which was our initial idea.”
The Fantasy Gaming Industry’s GST Struggles
The 28% GST has been a major setback for India’s fantasy gaming industry.
✔ Before October 2023, platforms were taxed only on platform fees (18%), making the business highly profitable.
✔ The new tax requires companies to pay GST on the entire betting amount, significantly reducing profitability.
✔ Several major gaming companies, including Dream11, MPL, Games 24×7, and Head Digital Works, have challenged these tax demands in the Supreme Court.
In January 2025, the Supreme Court granted temporary relief, pausing GST collection from 49 real-money gaming companies. However, uncertainty remains over the long-term sustainability of the industry under the new tax regime.
CrickPe’s Vision vs. Reality
CrickPe entered an already crowded fantasy sports market, dominated by Dream11, MPL, and My11Circle.
At the time of launch, Grover explained the unique selling point of CrickPe:
✔ In traditional fantasy platforms, from a ₹100 crore pool, platforms take ₹20 crore as fees, leaving ₹80 crore for winners.
✔ CrickPe aimed to change this model by distributing:
- ₹80 crore to winners
- ₹10 crore to cricket bodies and players
- ₹10 crore as platform profit
However, the model did not gain enough traction, forcing Grover to pivot away from the industry.
With CrickPe discontinued, Third Unicorn is now focusing on ZeroPe, a lending tech platform for medical loans.
ZeroPe allows users to:
✔ Take instant medical loans up to ₹5 lakh
✔ Choose from 1,000+ hospital partners
✔ Get financing for skin, dental, aesthetics, hair implants, and IVF treatments
The lending partner for ZeroPe is Delhi-based NBFC Mukut Finvest.
Grover highlighted the success of ZeroPe:
✔ Over 1 lakh organic downloads
✔ 4.6-star rating on iOS and Android
✔ Well-funded, with additional investment from Grover’s personal wealth
“We are providing EMI options across healthcare providers, making treatments affordable, especially for procedures not covered by insurance,” Grover stated.
With CrickPe shutting down, Grover is returning to his fintech roots.
India’s lending tech market is experiencing rapid growth:
✔ Expected to reach $1.3 trillion by 2030
✔ Projected to grow at 22% CAGR from 2024-2030
✔ Driven by higher smartphone penetration and digital finance adoption
By focusing on medical loans, Grover is targeting a niche but fast-growing segment of the fintech industry.
Ashneer Grover’s decision to shut down CrickPe and focus on ZeroPe highlights the challenges of India’s fantasy gaming industry under strict regulations.
✔ CrickPe’s shutdown reflects the impact of high taxation and intense competition.
✔ ZeroPe’s success indicates a shift toward fintech and lending tech, areas where Grover has prior experience.
✔ The fintech market’s rapid growth makes it a lucrative opportunity for Third Unicorn.
While fantasy gaming may no longer be in Grover’s plans, his next big bet on healthcare financing could be a game-changer in India’s fintech space.
