To continue its supremacy over the gaming industry, Dream Sports, the owner of fantasy sports platform Dream11, is slated to buy Esports firm SoStronk.
Dream Sports, the owner of fantasy sports platform Dream11, in an effort to strengthen its stronghold in the gaming industry is in advanced talks to acquire Indian Esports platform SoStronk.
Dream Sports, with the fresh capital raised from the recent funding round, will venture into the Esports sector with this deal, according to Money Control.
SoStronk is a Bangalore-based Esports tech enabler mainly focused on first-person shooter game Counter-Strike: Global Offensive (CSGO).
Founded in 2016 by Prashant Prabhakar and Karan Mishra, SoStronk specialises in providing regional servers for gaming in the B2B segment. It also offers technology framework and production assistance to online and offline Esports tournament organisers.
The approximate budget for this acquisition is in the range of USD 10 million to USD 15 million, according to reports.
Esports in India has received a massive boost during the COVID-19-induced lockdown, making it one of the fastest-growing industries.
The number of Esports athletes and enthusiasts is expected to grow more than five-fold to 20 million by 2021, according to a report by KPMG.
The report also suggests that the global Esports market is set to grow into a staggering USD 1.65 billion industry by 2021.
With the Esports sector slated for such monumental growth, it is logical for Dream Sports to invest in the flourishing market and multiply its presence.
Dream Sports raised USD 225 million in the latest round of funding led by Tiger Global Management, TPG Tech Adjacencies, Chrys Capital and Footpath Ventures, earlier this month.
Dream11, India’s largest fantasy sports platform, also gained the title rights of the Indian Premier League (IPL) 2020 with a reported bid of INR 222 crore, leaving behind the likes of Tata Group and Unacademy.
With IPL 2020 set to begin on Saturday, gaming firms have accelerated their marketing spends in order to gain control of the lucrative fantasy sports market.