India's most popular online fantasy gaming platform, Dream11 which is also one of the few profitable tech unicorns, reported a profit of Rs 180 crore against a loss of Rs 87 crore in 2020. Revenues numbers also shot up by almost 2.5 times, reported The Economic Times.
By the numbers: The company's revenues increased by 166%, from Rs 775.5 crore in FY19 to Rs 2,070.4 crore in FY20, according to business intelligence platform Tofler. In the filing, it attributed its revenue growth to innovative marketing strategies and exciting new products. Nykaa stands the only competitor who set its foot in the beauty and wellness industry to record a profit of Rs 62 crores in FY21.
Dream Sports closed a $400-million secondary funding spherical that valued it at around $5 billion this year and according to business sources, another secondary spherical is underway at a big valuation bounce. In a secondary transaction, present buyers promote their shares to new ones and the cash doesn’t go to the corporate’s coffers.
The company's expenses also increased to Rs 1,867 crore in FY20 compared to Rs 934 crore in the previous year. It spent a total of Rs 1,328.02 crore or 71% of its total expenses in advertising and promotions. Employee benefit spendings rose by 133.6% to Rs 153.21 crore in FY20.
“We want to redeploy our Ebitda and re-invest further into inorganic growth because, while organic growth continues, we don’t want to fall into that age-old trap of trying to do everything ourselves,” Harsh Jain informed ET in August.
In an earlier interview with ET, Jain had stated, “Our focus now is on diversification. We have one good core business which has market leadership in its area. Now, we want to go and build the YouTube, Gmail and Google Maps of sports. We want to build an Alphabet-like entity, not just Google Search.” Alphabet Inc is Google’s mother or father firm.
Cofounded by Jain and Bhavit Sheth in 2008, Dream11 had over 9 crore energetic customers who play fantasy cricket, soccer, kabaddi, hockey, in keeping with the submission. Dream 11’s fantasy sports activities were considered as a ‘game of skill’ by the Supreme Court. However, Karnataka authorities proposed an invoice that might ban such video games as a part of ‘online gambling’. The invoice, nevertheless, made exceptions for lotteries and betting on horse races.