Rario, the cricket NFT startup backed by Dream11, is facing major changes as its founders, Ankit Wadhwa and Sunny Bhanot, are being pushed out of the company. Dream11, the largest backer of Rario, is exerting greater control over the startup, leading to the departure of the founders. The changes also involve the elimination of many other roles within Rario. The startup, which counts Alpha Wave Global and cricket legend Sachin Tendulkar among its backers, is going through these transformations as parent company Dream Sports looks to cut costs.
Founders Being Pushed Out
Ankit Wadhwa, the CEO of Rario, and Sunny Bhanot, the CTO, are stepping down as investors at the startup gain more control. While the exact reasons behind their departure remain undisclosed, it is clear that Dream11’s influence played a significant role. The founders have not responded to requests for comment on the matter. This development marks a significant shift in the leadership and direction of Rario.
Other Roles Being Eliminated
In addition to the founders, Rario is also eliminating several other roles within the company. This move is part of the cost-cutting measures being implemented by Dream Sports. As the parent company looks to streamline operations and reduce expenses, it is restructuring the organization. The specific roles being eliminated have not been disclosed, but it is clear that the changes will have a significant impact on the overall makeup of Rario’s team.
Dream Sports’ Cost-Cutting Measures
The departure of Rario’s founders and the elimination of various roles within the startup are part of a larger cost-cutting initiative by Dream Sports. The parent company, Dream11, is taking steps to reduce expenses and optimize its operations. This includes negotiating licensing deals that Rario had previously signed in order to lower costs. The specific details of these negotiations have not been disclosed, but they are likely to result in changes to Rario’s business strategy and partnerships.
Changes Come as a Surprise
The recent changes at Rario come as a surprise to many in the industry. Just last year, the startup secured a $120 million funding round, which showcased strong investor interest and confidence in the company. At the time, Rario aggressively sought to acquire rights to sell cricket NFTs on its platform. The startup was valued at approximately $250 million during the previous funding round, and the founders sold some stake as part of the deal. However, the decline in the popularity of NFTs globally has impacted Rario’s performance, leading to the current shifts within the company.
Previous Funding and Stake Sale
Rario raised $120 million in funding last year, which was a significant milestone for the startup. The funding round demonstrated the interest and support of investors in Rario’s vision and potential. As part of this funding round, the founders of Rario sold some stake in the company. While the specific details of the stake sale have not been disclosed, it is clear that the founders have been involved in strategic decisions related to the company’s direction.
Decline in Popularity of Rario Platform
The Rario platform has experienced a decline in popularity in recent quarters, primarily due to the challenging market conditions for NFTs. NFTs, or non-fungible tokens, have seen a significant decrease in both volume and price as global economies have slowed down. This has made it harder for Rario to sell its digital assets and attract consumers. The declining popularity of NFTs has contributed to the changes within Rario, as the startup works to adapt to market conditions and find new ways to attract users.
Existing Partnerships
Despite the challenges faced by Rario, the startup currently maintains a number of partnerships. These partnerships include collaborations with cricket legend Sachin Tendulkar, Cricket Australia, IPL franchises Gujarat Titan and Punjab Kings, Abu Dhabi T10, Hero Caribbean Premier League, and the Lanka Premier League. These partnerships provide Rario with opportunities to expand its reach and offer unique NFT experiences to cricket fans globally. It remains to be seen how the recent changes within Rario will impact these partnerships and the future direction of the startup.
In conclusion, Rario, the Dream11-backed NFT startup, is undergoing significant changes with the departure of its founders and the elimination of various roles within the company. These changes come as Dream Sports implements cost-cutting measures and adjusts its strategy in response to the decline in the popularity of NFTs. The future of Rario remains uncertain, but the startup’s existing partnerships provide potential avenues for growth and innovation in the cricket NFT space.
