A number of traders, together with home-grown personal fairness agency Chrys Capital and Fb co-founder Eduardo Saverin’s funding car B Capital Group, are in talks to undertake a sizeable secondary transaction in Mumbai-based on-line Fantasy sports activities platform Dream11, doubtlessly valuing the corporate at about $2.25 billion.
Not less than two extra are within the operating to choose up stakes held by three present traders — Vani Kola-led Kalaari Capital, Renuka Ramnath-founded Multiples Alternate Asset Administration and San Francisco-based Assume Investments, a number of sources briefed on the developments instructed ET.
The contours of the deal embody a $100 million secondary transaction and a $20 million main spherical, which may see Dream11’s valuation greater than double from $1.1 billion in April final 12 months.
The shortlisted traders have been given three weeks for diligence, in accordance with the sources.
Dream11 and Chrys Capital spokespersons declined to remark, whereas emails despatched to Kalaari Capital, Multiples PE and the US and Singapore-based B Capital Group didn’t elicit any response until the time of going to press.
If the deal goes by way of, this would be the second time within the final 12 months that the three early backers of Dream 11 half promote shares within the firm. Avendus Capital is the monetary advisor for the deal.
In April final 12 months, Hong Kong and London-based funding agency Steadview Capital picked up stake in Dream 11 for an estimated $60 million, catapulting the 11-year-old firm into the rarified unicorn membership, or corporations with valuations of greater than $1 billion.
Dream11, based in 2008 by Harsh Jain, a College of Pennsylvania and Columbia College alumni, and Bentley College alumnus Bhavit Sheth, has emerged as an investor favorite over the course of the final two years.
In August final 12 months, Instances of India reported citing sources that Japan’s SoftBank and South Africa’s Naspers had been eyeing a stake within the firm, which has emerged as the primary gaming unicorn from Asia’s third-largest economic system.
Individually, in January, enterprise day by day Mint reported that New York-based funding agency Tiger World Administration was in talks to guide a $500 million main and secondary funding spherical.
Dream11 additionally counts Chinese language web behemoth Tencent as a significant investor, after the WeChat operator invested $100 million in 2018, a improvement first reported by ET.
The rising investor curiosity additionally follows a ruling by the Bombay Excessive Court docket that no betting or playing is concerned within the fantasy video games operated by Dream11 as their outcomes aren’t dependent upon profitable or shedding of any specific staff in the actual world on any given day.
The ruling, which adopted an earlier related one by the Excessive Court docket of Punjab and Haryana, has introduced aid to India’s broader, however still-nascent on-line fantasy sports activities gaming sector, and cleared the decks for potential investments within the area.
Moreover, the Bombay Excessive Court docket additional dominated that Items and Providers Tax was not relevant on your complete deposit obtained from the participant, however solely on the consideration that’s payable or collected for the provision of products or providers or each, inside the platform.
Dream11, which claims to have over 70 million customers on its platform, can also be the official fantasy gaming associate to the Indian Premier League (IPL) and the Board of Management for Cricket in India (BCCI).
In fiscal 12 months 2019, Dream11 India reported income of Rs 800 crore, from Rs 230 crore within the earlier monetary 12 months. Losses, nevertheless, widened to Rs 130 crore, from Rs 65 crore within the earlier reporting interval, in accordance with information collated by business tracker Tracxn.