Mumbai-based Dream Sports, the parent company of the online fantasy sports platform Dream11, is in talks with investors for another funding round, which may double its valuation to around $4 billion. The investors include Abu Dhabi-based Alpha Wave Incubation, an early stage fund managed by Falcon Edge.
The expected value of the funding round is $300 million, which, as per a report in The Economics Times (ET), will be through secondary sale of shares by early investors. A small portion of the transaction will come into the company, as well.
“Existing investors including the likes of China’s Tencent Holdings, Kalaari Capital, Multiples Alternate Asset Management are among the investors looking to sell their shares. The deal may involve some primary cash infusion but the final contours are still being worked out...” said ETs source.
Even in September 2020, Dream Sports secured $225 million in a secondary stake sale-based funding round, raising the company’s valuation to $2.5 billion. In that funding round, New York-based Tiger Global Management, TPG Tech Adjacencies, ChrysCap and Footpath Ventures entered the company.
The online gaming sector has seen a boost during the COVID-19 pandemic. Recently, Bengaluru-based fantasy sports platform Mobile Premier League (MPL) also received funding of around $100 million from investors like Composite Capital, Moore Strategic Ventures, and Telstra Ventures, which almost doubled the valuation of MPL.
Dream Sports has seen tremendous growth in the last two years. The company entered the unicorn club in April 2019, and its fantasy sports platform Dream11 won the IPL 2020 Sponsorship rights for Rs. 220 crore. In October 2020, the company bought AI-driven fantasy sports startup FanDuniya.