Dream11's parent firm raises $225 million from Tiger Global, TPG, ChrysCapital

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Dream Sports, the parent firm of fantasy gaming platform Dream11, has raised $225 million in a funding round from Tiger Global Management, private equity firms TPG and ChrysCapital and Footpath Ventures, the company said on September 14.

The fundraise comes less than a month after Dream11 bagged the title sponsorship rights for the Indian Premier League (IPL), the cricket tournament which drives the majority of its revenue.

While the company did not disclose its valuation, a source said it was valued at $2.5 billion. It is more than double the $1.1 billion the Mumbai-based startup was valued at in April 2019 when hedge fund Steadview Capital investment turned it into a unicorn, a company valued at $ 1 billion or more.

Also read: Why Dream11 is sponsoring IPL and what it means for the fantasy gaming unicorn

“We are excited to welcome our new partners… 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,” Harsh Jain, co-founder and CEO, Dream Sports, said.

A large portion of the money is also in secondary capital- giving an exit to investors such as Kalaari Capital, PE firm Multiples and Think Investments.

Avendus Capital was the banker to the deal.

“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,” Jain said.

Founded by Jain and Bhavit Sheth in 2012, Dream11 offers games such as cricket, kabaddi and football. Its official partners include IPL, the International Cricket Council (ICC) and the National Basketball Association (NBA).

The parent company Dream Sports also runs streaming app FanCode and sports accelerator DreamX.

While fantasy gaming is a seasonal business, it is also seen as one of the most profitable ones.

Chinese internet giant Tencent is a minority investor in Dream11. The deal will help Dream11 broaden its investor base as the border standoff continues between the two countries and India steps up scrutiny of investment coming from China.

Indian startups have thrived on Chinese investment but will now have to look elsewhere as anti-China sentiment gains ground.

“We have grown from one to many brands and from 200 Sportans (employees of Dream Sports) to 450 in the last two years. I am proud of our lean yet highly efficient team that has been the driving force behind the creation of ‘Sports Tech’ as a new industry category in India,” said Coo and co-founder Sheth.