Dream11 aims to raise USD 300 million, provide exit to Tencent

Dream Sports, the parent company of India’s largest fantasy sports platform Dream11, might see its valuation catapult to around USD four billion if talks of a fresh funding round go through.

The latest round of funding will be through the secondary sale of shares, allowing an exit to the early investors of the fantasy gaming giant.

“Existing investors including China’s Tencent Holdings, Kalaari Capital, and Multiples Alternate Asset Management are among the investors looking to sell their shares,” reported the Economic Times, citing a person familiar with the development.

“The deal may involve some primary cash infusion but the final contours are still being worked out,” the source added.

Dream11 is aiming to raise nearly USD 300 million from new investors, including Falcon Edge-managed Alpha Wave Incubation. However, only a small portion of the new capital will be infused into the firm.

This deal will expand Alpha Wave Incubation’s Indian portfolio, which includes education technology firms Cuemath and Udayy.

Last September, Dream Sports raisedUSD 225 million from a funding round led by Tiger Global Management, TPG Tech Adjacencies, Chrys Capital, and Footpath Ventures, taking its valuation to USD 2.5 billion.

Dream11, with more than 100 million users, offers fantasy gaming options for a plethora of sports, including cricket, football, baseball, basketball, hockey, volleyball, American football, handball, and kabaddi.

Founded in 2008 by Harsh Jain and Bhavit Seth, Dream Sports also has a multi-sport aggregator platform FanCode, which offers fantasy gaming tips, statistics, live sports, highlights, news and interviews, along with a newly opened online sports merchandise store.

Indian fantasy sports and online gaming companies have grown leaps and bounds during the COVID-19 pandemic, which forced people to stay at home.

Esports and fantasy gaming platform Mobile Premier League (MPL) reported a Series D funding round last month, which raised aroundUSD 95 million, taking its valuation to USD 945 million.