Dream11 has created a monopoly in fantasy sports with 90% market share
But Ashneer Grover’s new startup CrickPe is on its way to destroy it
Why fight in such a competitive industry when he could have built anything?
Here's how he plans to make CrickPe the next todu fodu thing:
But Ashneer Grover’s new startup CrickPe is on its way to destroy it
Why fight in such a competitive industry when he could have built anything?
Here's how he plans to make CrickPe the next todu fodu thing:
IPL season is back!
And do you know what else is — The constant reminders of making your own team on fantasy gaming apps.
Companies like Dream11, Mycircle11, MPL are ready to bombard you with their Ads and now we have a new addition to this list: CrickPe
And do you know what else is — The constant reminders of making your own team on fantasy gaming apps.
Companies like Dream11, Mycircle11, MPL are ready to bombard you with their Ads and now we have a new addition to this list: CrickPe
Right now we have more than 25 official fantasy gaming platforms in India and god knows how many are operating under the radar.
The crazy thing is — just one company owns 90% of market share with more than 120million users— Dream11.
The crazy thing is — just one company owns 90% of market share with more than 120million users— Dream11.
Founded in 2012 by two avid sports fans, Dream11 is India’s first single-match fantasy sports platform.
It offers fantasy cricket, football, kabaddi and NBA basketball.
It offers fantasy cricket, football, kabaddi and NBA basketball.
The platform features online games where players use their knowledge of sports to create a virtual fantasy team of real-life players.
They then earn real money based on how those players perform in real matches.
They then earn real money based on how those players perform in real matches.
When there’s so much competition in this industry with one app taking 90% of market share, then why does even a seasoned founder like Ashneer wants to build in this industry?
There’s only one reason for this: NO FANTASY GAMING APP HAS A MOAT
There’s nothing unique in these platforms, every app is a clone of each other.
There’s nothing unique in these platforms, every app is a clone of each other.
Simply put — if you use Dream11, then nothing is stopping you from using CrickPe.
For e.g., You buy an iPhone because it has a few features that no other phone has or you use twitter because it has some unique features that stops you from going to other platforms.
For e.g., You buy an iPhone because it has a few features that no other phone has or you use twitter because it has some unique features that stops you from going to other platforms.
Sports is an activity which is consumed as a group activity and has natural network tendencies.
That means any product that is in this space can grow more if they target collective behaviour.
That means any product that is in this space can grow more if they target collective behaviour.
If you make a team on CrickPe, you’re more likely to share with your friends and have fun competing with each other.
This triggers the Network effect and Word of mouth marketing.
This triggers the Network effect and Word of mouth marketing.
Such a product has natural hook to it because of the —GAMBLER’S FALLACY
It arises when the user believes that a certain event will happen again because it took place in the past
For ex you win your initial few contest in the fantasy app then you are most likely to keep playing
It arises when the user believes that a certain event will happen again because it took place in the past
For ex you win your initial few contest in the fantasy app then you are most likely to keep playing
This psychological behaviour is helping these apps to retain the users.
Among the gaming unicorns, Dream11 is the only profitable entity currently with its revenue rising to INR 3,840.7 Cr in FY22. The net profit currently stands at 141 Cr in FY22.
Among the gaming unicorns, Dream11 is the only profitable entity currently with its revenue rising to INR 3,840.7 Cr in FY22. The net profit currently stands at 141 Cr in FY22.
Have you wondered why such businesses are able to generate so much revenue?
because they are “HOPIUM business” The user is ready to take a significant amount of risk because they are projected a beautiful end.
These apps take advantage of this hope and earn tons of money!
because they are “HOPIUM business” The user is ready to take a significant amount of risk because they are projected a beautiful end.
These apps take advantage of this hope and earn tons of money!
If you have used such apps then you know there are multiple contests going inside the app, you can join as much as you want and you can also make different teams and join the same contest.
What does it tell us about user behaviour?
What does it tell us about user behaviour?
That people are willing to spend the money and join different contests if they think it will increase their chance of winning.
So what’s stopping them from using one more such app?
So what’s stopping them from using one more such app?
This is not new. If you’ve seen Ashneer is not very fond of entering markets that haven’t been discovered yet.
Like with BharatPe, they entered a space crowded by Paytm, PhonePe, MobiKwik and others. But with a simple proposition he grew it quickly within just 3 years.
Like with BharatPe, they entered a space crowded by Paytm, PhonePe, MobiKwik and others. But with a simple proposition he grew it quickly within just 3 years.
There has to be a differentiating factor right? Yup, actually there is one thing that Ashneer wants to change and he’s calling it the biggest revolution in this industry —
In CrickPe you can send real money to your favourite players and also to team owners. It is like a tipping system.
How’s this beneficial for the company? So CrickPe will charge a certain transaction fees on those tips.
How’s this beneficial for the company? So CrickPe will charge a certain transaction fees on those tips.
This will open up a whole new revenue stream for the company because we love to worship our players.
Although who are the players that the company has onboarded is still not clear.
One more thing —with every match , players will get a 10% of your winning.
Although who are the players that the company has onboarded is still not clear.
One more thing —with every match , players will get a 10% of your winning.
What’s the challenge for CrickPe?
Around 20% of the internet users in India are users of Dream11. And they have already over-marketed this proposition. That means whoever is attracted by fantasy gaming is most likely using Dream11.
Around 20% of the internet users in India are users of Dream11. And they have already over-marketed this proposition. That means whoever is attracted by fantasy gaming is most likely using Dream11.
Since there is no big difference in the two products,it will not be easy for CrickPe to make people use the App just for tipping
Tipping is a great engagement generator on the app. Suppose you’re a user of the app and you’re watching Virat destroying CSK and winning a thriller.
Tipping is a great engagement generator on the app. Suppose you’re a user of the app and you’re watching Virat destroying CSK and winning a thriller.
So, if CrickPe sends you a notification asking you to tip Virat for this knock, you’re more likely to have an emotional impulsive response.
This might look like a normal feature, but it translates into increasing your engagement on the app
This might look like a normal feature, but it translates into increasing your engagement on the app
Next benefit of this is something related to what Ashneer Grover always talks about — increasing the ticket size.
So, this feature becomes like an upsell to the fantasy cricket part of the app.
So, this feature becomes like an upsell to the fantasy cricket part of the app.
Will this become the Third Unicorn of Ashneer or not? Time will tell!
The party has already started in the CrickPe office as the app has managed to reach the 2 Lakh download numbers in just 48 hours.
Okay enough scrolling let’s sit back and watch CSK vs GT!
The party has already started in the CrickPe office as the app has managed to reach the 2 Lakh download numbers in just 48 hours.
Okay enough scrolling let’s sit back and watch CSK vs GT!
But first, if you liked this read do ReTweet🔄 the 1st tweet and
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