Dream Sports becomes the most valuable gaming startup in India with a valuation of $2.5B
For a sports crazy nation with over a billion people finding different reasons to justify their love for the sport, fantasy sport broke that glass ceiling while having legalities as a solid backing.
Fantasy Sports was largely unheard of until as recently as three or even two years ago, the situation right now stands completely changed. As many as 60 or more fantasy sports platforms have surfaced in the last two years alone, paving way for the number of users to more than double up in the same period.
Recently Dream11- a Mumbai based fantasy sport startup received funding of $225M. Dream 11 is also the title sponsor of Indian Premier League [IPL].
The recent funding has reduced Tencent Holdings' stake in the company to a single digit
Dream Sports, the parent company of India's leading online fantasy sports company Dream11, has secured funding of $225 million from Tiger Global Management, TPG Tech Adjacencies (TTAD), ChrysCapital and Footpath Ventures. This makes Dream Sports the most valuable gaming startup in India.
In mid 2018 Tencent Holdings bought stake in Dream Sports worth $100M, making Tencent Holdings the majority stakeholder in the fantasy gaming startup- Dream 11. But due to the recent fresh funding of $225M by TPG and other investors has lead to the reduction of Tencent Holdings' stake to a single digit.
The main goal of the recent funding is to reduce the Chinese giant's holdings in the company as the Government of India is targeting Apps and Games funded by Tencent Holdings due to rising tensions between India and China and the best example is the ban of the most loved mobile game and esports in India- PUBG Mobile.