Dream11 Parent Firm Raises $400 Million in Funding

Dream Sports Secures $400 Million Funding

Dream Sports, the company behind the popular fantasy sports application Dream11, has successfully raised $400 million in a new financing round. This investment supports the Mumbai-based company’s ambition to become a comprehensive “end-to-end sports tech company” within India.

The funding round was spearheaded by TCV, D1 Capital Partners, and Falcon Edge. Consequently, Dream Sports’ valuation has nearly doubled, reaching approximately $5 billion, a significant increase from the $2.5 billion valuation achieved in a previous funding round last September.

Investor Participation

A number of existing investors also contributed to this funding round. These include prominent firms such as Tiger Global, ChrysCapital, TPG Growth, Steadview Capital, and Footpath Ventures. This brings the total funding raised by Dream Sports to over $720 million.

Dream11 has capitalized on the immense popularity of cricket in India. The sport attracts considerable interest from major global corporations, including Disney and Facebook.

How Dream11 Works

The platform allows users to participate in fantasy sports by creating virtual teams composed of actual players. These teams then compete based on the real-life statistical performance of the players they comprise.

Dream11 currently offers fantasy versions of cricket, football, kabaddi, and basketball. Users have the opportunity to win cash prizes based on the performance of their chosen teams.

Company Statement

Harsh Jain, co-founder and CEO of Dream Sports, stated that this funding represents a substantial endorsement of the Indian startup ecosystem. He emphasized the company’s role in enhancing digital engagement with live sporting events and fostering a closer connection between fans and the sports they enjoy.

Jain also highlighted Dream Sports’ contribution to the growth of the Indian sports sector and aligned the company’s success with the Indian government’s initiatives of Atmanirbhar Bharat (Self-Reliant India) and Digital India.

User Base and Sponsorship

Despite its Android application not being available on the Google Play Store, Dream11 boasts a user base exceeding 100 million. The company demonstrated its financial strength by securing the title sponsorship for last year’s Indian Premier League (IPL) cricket tournament with a bid of $30 million.

TCV’s Perspective

Gopi Vaddi, General Partner at TCV, commented on India’s vibrant sports fanbase and Dream Sports’ innovative product offering. TCV’s investment portfolio also includes well-known companies like Netflix, Airbnb, Sportradar, and Peloton.

Competition in the Fantasy Sports Market

Dream11 is not alone in the Indian fantasy sports landscape. Mobile Premier League, backed by Sequoia Capital India and Times Internet, is a significant competitor, having recently expanded into traditional mobile gaming.

ShareChat, supported by Twitter, also began exploring the fantasy sports market in the previous year.

Regulatory Challenges

The fantasy sports industry in India faces ongoing regulatory challenges. Several states, including Assam, Odisha, Sikkim, and Telangana, have implemented bans on fantasy sports betting.

Industry Analysis

Rishi Alwani, an analyst specializing in the Indian gaming market and editor of IGN India, noted that the industry often attempts to position itself as video games to gain legitimacy. He suggests that focusing on its own merits might be a more effective approach.