Dream11 parent valued at $5 billion in $400 million secondary funding round
Dream Sports' valuation doubled to $5 billion in less than six months
Mumbai / March 24, 2021 / 05:57 PM IST
Dream Sports, best known for its fantasy gaming platform Dream11, said on March 24 that it has raised $400 million in a secondary round, with TCV, D1 Capital Partners and Falcon Edge Capital buying out the stakes of Kalaari Capital and private equity firm Multiples, among others.
It has been valued at $5 billion in this round, almost doubling its valuation in barely six months. Existing investors such as Tiger Global, ChrysCapital, TPG Growth, Steadview Capital and Footpath Ventures also invested in this round.
This is also TCV’s first investment in India. Its investments in the US include Netflix, Airbnb and Peloton. The deal also comes just before the Indian Premier League (IPL) cricket tournament kicks off in a few weeks. IPL is a significant contributor to Dream Sports’ revenue.
“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. Our growth trajectory is also a testimony to the honourable Prime Minister’s vision of Atmanirbhar Bharat and Digital India,” said Harsh Jain, CEO and Co-Founder, Dream Sports.
“India is home to the world's largest and most energetic sports fan base with a dynamic mix that is unique to the subcontinent. Dream Sports is serving this community with a highly innovative product offering,” said Gopi Vaddi, General Partner at TCV.
Chinese internet giant Tencent is also an investor in the company, and while it held a 10% stake earlier, its stake has now been diluted down to single digits as Dream Sports’ valuation grew but Tencent could not invest due to the Indian ban on Chinese investments. However unlike some Chinese investors, Tencent has not looked to sell its stake either.
Shunwei Capital, active in India until the ban, recently exited local social network Koo and lending platform Krazybee.Avendus Capital advised Dream Sports on the fundraise.