Dream Sports, Parent Firm of Indian Fantasy Sports App Raises $225M
Dream Sports, the parent firm of fantasy sports application Dream11, has bagged in $225 million in the latest financing round as the Mumbai headquartered firm creates what it calls “end-to-end sports tech company” in the cricket-loving nation, which is also the world’s second-largest internet market.
Leveraging on Popularity of Cricket
Tiger Global Management, TPG Tech Adjacencies (TTAD), ChrysCapital, and Footpath Ventures financed $225 million in Dream Sports with the help of primary and secondary investments, the 12-year-old Indian firm said.
The latest round valued Dream Sports at over $2.5 billion, two people familiar with the matter said.
Dream11 has managed to cash in on the popularity of cricket, a game that has intrigued and gathered serious attention from various major firms consisting of Disney and Facebook. Dream11 explores the fantasy part of it, enabling gamers to pick their choice of best players for an upcoming match. They can win cash prizes depending on how their selected team performs.
This year, Dream11 is also the title sponsor for the 2020 season of the Indian Premier League cricket tournament. It is one of the most popular sporting events in the world. The startup won the rights, which was previously secured by the smartphone vendor Vivo, by bidding $30 million for it. Vivo had to back out of the sponsorship amid geopolitical tension between India and China.
The 2020 season of IPL kick starts later this week after months of delay because of the coronavirus outbreak.
‘Make Sports Better’
“The sports sector has high growth potential in India. There is a significant opportunity to enhance the fan experience and we are excited to partner with Dream Sports to leverage technology in ways that will deepen the connection between Indian fans and the sports they love,” expressed Akshay Tanna, Managing Director at TPG, in a statement.
In recent years, Dream Sports has widened into additional categories such as merchandise. Harsh Jain, chief executive and co-founder of Dream Sports, alleged in a statement today that the startup had accumulated over 100 million users. Dream11 app is not on the Google Play Store and the startup depends on people either utilizing its mobile web or side loads its Android app on to their phones.
“As a homegrown Indian company, we are proud to continue adding value to our 10 crore Indian sports fans, investors, employees, and the overall sports ecosystem in India. In the last two years, we have grown beyond fantasy sports to sports content, merchandise, streaming, experiences, and there is much more to come. Our vision is to ‘Make Sports Better’ for India and Indian fans through sports technology and innovation,” he added. Avendus Capital was the financial advisor to Dream Sports on the transaction.