“Rario’s Digital Cricket Dream Fades: When NFT Hype Couldn’t Sustain the Game”

Startup Name: Rario

Founded: 2021

Closed On: January 29, 2024

Business Model:
Rario was a cricket-based NFT collectibles platform that allowed fans to buy, sell, and trade officially licensed digital collectibles (NFTs) of cricket players and moments. The platform partnered with major cricketing entities and offered features like fantasy cricket games (D3), real-money outcomes, and exclusive fan experiences. Users could participate using fiat payment methods such as credit cards and bank transfers.

Reason for Closure:
Rario shut down its flagship product due to a combination of industry headwinds, regulatory changes in Web3, the crash in the NFT sector, and management failures. The NFT market in India saw tepid adoption, and Rario’s model proved unsustainable as:

• The value of NFT portfolios nosedived, leaving many investors unable to exit their holdings.

• The company suffered massive financial losses, spending around ₹600 crore to earn just ₹39 crore in FY23, and writing off NFTs worth ₹458 crore.

• Both co-founders exited in September 2023, leading to new management and a significant reduction in workforce.

• The new management decided to sunset the product, promising to launch a new cricket gaming platform but making existing NFTs unusable on the new platform.

Learnings to Be Avoided by New Startups:

• Validate Market Demand Early: Ensure genuine user demand for new technologies like NFTs, especially in markets with limited adoption.

• Monitor Regulatory Environment: Stay agile and compliant as regulations in emerging sectors like Web3 can shift rapidly and impact business viability.

• Manage Financial Discipline: Avoid unsustainable spending, especially on licensing and marketing, without clear paths to profitability.

• Prepare for Volatility in Emerging Tech: Sectors like NFTs are prone to hype cycles and crashes; build business models that can withstand downturns.

• Communicate Transparently with Users: Sudden product changes or shutdowns can erode trust; keep users informed and offer fair compensation where possible.

• Plan for Leadership Continuity: Founder and key team exits can destabilize a company—ensure succession and crisis management plans are in place.

Summary Table

Rario’s case highlights the risks of building in fast-moving, hype-driven sectors and underscores the need for market validation, financial prudence, and regulatory awareness.