Dream Sports brings in $ 840 million at a valuation of $ 8 billion

Bombay: Dream Sports, the parent company of fantasy online games platform Dream11, has raised $ 840 million for a valuation of $ 8 billion. New and existing investors led the round including Falcon Edge, DST Global, D1 Capital, Tiger Global and Redbird Capital. TPG and Footpath Ventures also participated.

The new funding comes as the Mumbai-based company closed a $ 400 million secondary financing round in March, which valued the company at around $ 5 billion.

The 13-year-old company has diversified its offerings in recent years to cover sports technology products and services. It recently pledged $ 50 million for in-house sports content and commerce platform FanCode with the larger goal of becoming a one-stop destination for sports. Dream Sports has also introduced payment solutions through Dream Pay, launched an accelerator called DreamX, and operates DreamSetGo, a sports experimentation company. In August, the company said it had created a venture capital arm, Dream Capital, with a body of $ 250 million to grow into a sports technology conglomerate.

Harsh Jain, co-founder and CEO, said the company will focus on creating a thriving sports ecosystem that goes beyond fantastic games. “We are now trading sports, data analytics, merchandise, investing in sports startups, and then there are platforms like Fancode that have grown tremendously for us. We see a huge opportunity to deepen sports like kabaddi… beyond cricket… and that’s what we’re aiming to do with this funding, ”said Jain.

The company will remain private for the time being, he said, amid an end to tech startups exploiting public markets.

“We’re not going to go public because the market is hot, we will when we think we can solve a problem. For the coming year, it’s not in our plans,” he said.

Co-founded by Jain and Bhavit Sheth in 2008, Dream Sports has a user base of 140 million, which it seeks to tap into to create a comprehensive sports experience. For the fiscal year ending March 2020, it posted a profit of Rs 180 crore, making it one of the few Indian consumer tech unicorns to have gone profitable.

In an interview with ET previously, Jain said, “We have a good core business that is the market leader in its field. Now we want to go build YouTube, Gmail, and Google Maps for sports. We want to create an Alphabet type entity, not just Google search. “Alphabet Inc is the parent company of Google.

Dream Capital has so far supported 10 companies, including Fittr, SoStronk, KheloMore and Elevar. It is now expanding its sports, fan engagement and fitness portfolio in India and abroad.

Dream Sports’ latest fundraiser comes again and again from the regulatory hurdles the online gaming industry has faced in the country.

Earlier this month, the Karnataka High Court extended partial relief it had given to the co-founders of Dream Sports. This meant that Bengaluru police would not be able to take coercive action against them until further court orders. In October, the Annapoorneshwari Nagar Police Station registered an FIR against the fantasy gaming platform following a complaint from a town resident that it violated a new state law prohibiting betting and betting on online games. Dream 11 has suspended operations in Karnataka, adding that “the decision is without prejudice to our rights and claims under the law.” The Karnataka Police (Amendment) Act 2021 came into effect on October 5 and bans online “gambling”.

Dream11 reiterated that it had been informed by the Indian Fantasy Sports Federation that the law does not apply to its member fantasy sports operators.

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