You are here: Home » Companies » Start-ups » News
Business Standard

Dream11 parent touches $5-bn valuation after $400-mn secondary fund raise

This is the largest investment in the Indian sports tech ecosystem to date

Topics
Dream11 | fund raising | startups in India

Samreen Ahmad  |  Bengaluru 

Both are as passionate about the technology part of the business as they are about the sport itself, but they fill in slightly diverse roles in the organisation
Dream Sports founders Harsh Jain and Bhavit Sheth

Sports technology company Dream Sports, with brands such as Dream11, FanCode, DreamX, DreamSetGo, and DreamPay in its portfolio, has raised $400 million in a new funding round led by TCV, D1 Capital Partners, and Falcon Edge Capital. This is TCV’s first investment in India. The latest round takes the company’s valuation close to $5 billion, revealed sources.

This secondary round also saw participation from existing investors like Tiger Global, ChrysCapital, TPG Growth, Steadview Capital, and Footpath Ventures. Falcon Edge Capital, co-founded by Navroz Udwadia, invested via Alpha Wave.

A secondary funding round means the company does not get any money. The fund goes to the existing investors who divest their stake in the company.

According to reports, while a few early investors, such as Kalaari Capital and Multiples Alternate Asset Management, have sold parts of their stake in the company for a high return, no one has exited the company in this round.

ALSO READ: Markets slump as coronavirus cases rise, global recovery turns uncertain

Dream Sports had raised $225 million at a valuation of $2.5 billion in September last year. With the valuation doubling to around $5 billion now, Dream Sports joins the list of most valued start-ups of India, such as Paytm, Byju’s, Zomato, and Oyo.

“This is a huge vote of confidence to the Indian start-up ecosystem. We have created the fantasy sports category in India to drive digital engagement to real-life sporting events and bring fans closer to the sport they love. We are proud to continually contribute to the overall expansion of the Indian sports ecosystem,” said Harsh Jain, chief executive officer and co-founder, Dream Sports.

Avendus Capital was the exclusive financial advisor to Dream Sports on the transaction.

ALSO READ: Fintech start-up Khatabook acquires Biz Analyst for $10 million

For several years, the Mumbai-based firm, co-founded by Jain and Bhavit Sheth in 2008, failed to attract investors and remained entangled in legal battles as virtual betting or fantasy sports was considered illegal in India.

However, a favourable court order in 2017 removed legal hurdles ahead of it.

“India is home to the world’s largest and most energetic sports fanbase with a dynamic mix that is unique to the subcontinent. Dream Sports is serving this community with a highly innovative product offering. We are inspired by what Harsh, Bhavit, and the Dream Sports team have built, and we look forward to partnering them,” said Gopi Vaddi, general partner at TCV, which has invested in global technology giants like Netflix, Airbnb, and Godaddy.

Interestingly, is not available on the Google Play Store, but has a userbase of 100 million. It was the lead sponsor for the Indian Premier League last year after bidding $30 million for the spot.

Access to affordable smartphones, low network data tariffs, and improving mobile internet speeds have led to a spurt in the online gaming userbase in the country. The onset of the Covid-19 pandemic also brought about a significant shift in mobile usage and consequently in mobile gaming too. India has become home to one out of 10 mobile game users in the country, said an InMobi report.

The online gaming sector has seen a lot of action lately. Recently, the Mobile Premier League raised $95 million in a Series D round and is on the verge of becoming a unicorn, with a current valuation of $945 million. Mobile gaming company Nazara Technologies became the first gaming firm in India to get listed. The initial public offering mopped over Rs 260 crore from anchor investors even before the listing.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, March 24 2021. 17:25 IST
RECOMMENDED FOR YOU
.