Dream11 becomes India’s first gaming startup to be valued $1 billion. This puts the startup into the Unicorn Club after Steadview invests. Founded in 2012, the app offers fantasy gaming in cricket, football, kabaddi, and NBA. It aims to reach 100 million users in 2019.
Mumbai: Fantasy gaming startup Dream11 has joined the unicorn club by investment from Steadview Capital. It claims to have 50 Mn users and enables them to showcase their sports knowledge through fantasy gaming. Dream11 users pay an entry fee to participate in paid contests and the company makes its money by charging a platform fee from the total pool collected.
Games co Dream11 valued at $1bn https://t.co/44LTmsDYnq
— TOI Business (@TOIBusiness) April 8, 2019
When the ‘Dream’ came true:
Dream11’s significant growth
In the last 5 years, the startup seems to have grown up with a CAGR of nearly 200%. The company saw only a million gamers in the initial years of the launch. The number then skyrocketed to 3 million users in just 3 months of 2016.
Dream11’s success, however, saw legal challenges. This was because of fantasy gaming’s resemblance to gambling, that is illegal in India. A case was filed in Punjab and Haryana High Court to check its legitimacy. Last year in April, the court ruled that the gaming was more based on skills, rather than luck by chance.
This transaction with Dream11 marks Steadview Captial’s third deal in the past four months. Previously Steadview invested $50 million in UrbanClap in December last year and $50 million in Ola in January this year.
The Harsh Jain-led firm was named in Top 10 biggest and most popular trends of 2018. According to the company statement, the deal involves a secondary sale of shares by Kalaari Capital, Think Investments and Multiples Equity.
The company has recently signed a 4-year partnership with BCCI. This growth can be attributed to annual T20 cricket summer when the Indian Premier League (IPL) dominates all sports in India. Dream11 was the associate sponsor of IPL 2018 and continues to be the same for IPL 2019.