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Dream11 Parent Company Eyeing US Listing; Aims to Raise $1.5 Billion Valuing it at $6 Billion 

Dream Sports Eyeing US Listing in 2022
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  • Attreyee Khasnabis April 21, 2021
  • 3 Minutes Read

Less than a month after India’s first gaming unicorn, Dream Sports touched a $5 Billion valuation following a secondary funding round, the company is back in the news. This time around, the gaming giant is reportedly working towards a US listing by early next year and aims to raise $1.5 Billion through the process.

According to an Economic Times report, Dream Sports, the parent company of Dream11, is in talks with investment banks for the proposed initial public offering (IPO). If the company does raise $1.5 Billion through the listing, its valuation will touch $6 Billion, an almost 20% increase since its last funding round in March.

The March secondary funding round had witnessed participation from TCV, D1 Capital Partners, and Falcon Edge. The lead investor TCV is one of the largest growth equity firms globally, with investments in marquee technology companies like Airbnb, Expedia, Facebook, Fandango, GoDaddy, Modsy, Netflix, etc. This was the company’s maiden investment in India.

Dream Sports, founded in 2008 by Harsh Jain and Bhavit Sheth, is the parent company for fantasy platform Dream11, sports accelerator Dream X, gaming content and streaming platform FanCode, and gaming events platform DreamSetGo. In October 2020, the company’s fantasy sports portal, Dream11, hit the record milestone of 5.30+ Million concurrent users.

Sources have confirmed that the Mumbai-based fantasy sports startup, Dream Sports, is currently in exploratory talks with investment banks to expedite its plans for the overseas listings. Citigroup, JP Morgan, and Morgan Stanley are among the investment banks that have made presentations to Dream Sports as of the first week of April.

“The bankers have made presentations. The company indicated that the next round of fundraising could be through a listing. So, talks are in that direction,” a person aware of the development told the publication.

The report also indicated that Dream Sports can seek a listing through a SPAC (special purpose acquisition company), also called a blank cheque company in the US.

The co-founder of Dream Sports, Harsh Jain is a board member of Think Elevation Capital Growth Opportunities, a SPAC launched by Ravi Adusumalli and Shashin Shah. The planned listing may involve both a primary and secondary sale of shares. Some Dream Sports’ early backers may use this opportunity to exit, said people with direct knowledge of the matter.

Harsh Jain
Harsh Jain

 

Jain is yet to make an official statement on the matter. However, in an interview with Economic Times last month, Jain had said, “We have no plans to IPO… We want to go public as a sports-tech company. For that, we need to have a substantial portion of our business coming from non-fantasy sports.”

As the online gaming scenario in India is booming like the US, Dream Sports continues to grow with its Dream11 platform. With the IPL season in full swing since April 9, Dream11 was retained by the Board of Cricket Control in India (BCCI) as the IPL Official fantasy partner. The company is among the associate sponsors of the ongoing IPL series, along with EUME, Equitas, Boost, BKT, Mai Dubai.

Even though Dream Sports is still India’s first and only gaming unicorn, Mobile Premier League (MPL) is close to becoming the second gaming startup to cross a $1 Billion valuation. MPL, the second-biggest fantasy sports platform in India, secured $95 Million (~₹691 Crores) in a Series D funding round in February, at a valuation of $945 Million.

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