Indian fantasy gaming company Dream11 could double its valuation to $2.25bn (€1.97bn) in an upcoming round of funding, according to local media.
The company has attracted the interest of private equity firms TPG, Advent, James Murdoch’s Lupa Systems and ChrysCapital, according to The Economic Times. They are said to be in final discussions to take part in a $150m-200m funding round. The newspaper reported that Sunley House Capital Management could also join the list of investors.
The growing investor interest follows a ruling by the Bombay High Court that no betting or gambling is involved in the fantasy games operated by Dream11, as game results are not dependent upon winning or losing of any particular team in the real world on any given day.
The ruling, which followed an earlier similar one by the High Court of Punjab and Haryana, has brought clarity to India’s still-nascent online fantasy sports gaming sector, and increased interest for investments in the industry.
Dream11 has more than 70 million registered users, and is the official fantasy games partner of the Indian Premier League and the Board of Control for Cricket in India. It was valued at $1.1bn following an investment by Hong-Kong hedge fund Steadview Capital in April last year.
Dream11 recently got behind the European Cricket League’s new European Cricket Series. The Indian fantasy sports platform will be the title sponsor of the competition, which will consist of 400 ten-over matches over 100 matchdays across Europe.
Dream11 was a sponsor of last year’s inaugural European Cricket League with shirt sponsorship rights and branding around pitchside LED boards.
Founded in 2012 by Jain and Bhavit Sheth, Dream11 wrapped up a $100m Series D funding round led by Chinese technology conglomerate Tencent Holdings in September 2018. The company reported revenue of ₹800 crore ($114.1m/€100m), up almost 350 per cent from ₹230 crore. However, the company’s losses doubled from ₹65 crore to ₹130 crore, according to data collated by industry tracker Tracxn.