Dream11 eyes $200 million investment from Tiger Global

India’s biggest fantasy gaming platform Dream11 is set to double its valuation to more than $2 billion with another round of investment.

New York-based investment firm Tiger Global Management, one of the firm backers of Indian startups, is in talks with Dream11 for a potential investment of up to $500 million, according to media reports.

Tiger Global has raised $3.8 billion for global investment in startups in the US, China and India and aims to spend as much as $200 million in Dream11. It intends to do so by acquiring shares from the early investors such as Kalaari Capital and Think Investment as well as subscribing to fresh equity issues.

This investment, if successful, will take the valuation of Dream11 to an impressive $2.5 billion. 

Recently, Tiger Global invested $200 million in online education portal Byju’s and earlier in the e-commerce firm Flipkart.

Founded by Harsh Jain and Bhavi Sheth in 2008, Dream11 became India’s first gaming unicorn - a company with a valuation of more than $1 billion - in April 2019. This is after Steadview Capital, a Hong Kong and London-based investment firm, led a $60 million round by purchasing secondary stakes from early investors, catapulting Dream11 into the unicorn club.

Dream11 has also seen interest from other investors like Chrys Capital and Facebook co-founder Eduardo Saverin’s B Capital Group. Chinese internet giant Tencent is also a major investor in Dream11, having invested $100 million in 2018.

The list of potential investors is only expected to grow with IPL around the corner and with the Supreme Court passing an order holding that fantasy gaming -- in the Dream 11 format -- is not betting and therefore, legal.

The Mumbai-based fantasy gaming company currently offers cricket, football, basketball, kabaddi, hockey, volleyball and baseball to the 82 million users of its platform. 

It has inked deals with the Board of Control for Cricket in India (BCCI), Indian Premier League (IPL), Indian Super League (ISL), National Basketball Association (NBA) and Pro Kabaddi League (PKL), to name a few.