After Gaana, Tencent eyes $100 Mn investment in fantasy sports platform Dream11

Dream11
Image credit

After starting the year with investment in music streaming service platform Gaana, Chinese Internet conglomerate Tencent is looking to invest an estimated $100 million (Rs 656.63 crore) in online fantasy sports platform Dream11.

Owner of Wechat messaging platform has offered a term sheet for a transaction that could potentially value Dream11 at a pre-money valuation of $400-$450 million, according to sources quoted in ET report.

Though, the platform is yet to confirm the reports of advance talks.

Founded in 2012 by Harsh Jain and Bhavit Sheth, Dream11, has got early funding from venture capital firm Kalaari Capital, Renuka Ramnath-led private equity firm Multiples Alternate Asset Management and San Francisco-based investment firm Think Investments.

Earlier this month, Dream11 won a favorable judgment from the Punjab and Haryana High Court. The playing fantasy games required considerable skill, judgment and discretion, and he held that such games can’t be considered gambling, said Justice Amit Rawal.

At present, the fantasy sports platform holds an almost 90 per cent market share. The segment is said to have huge potential with the number of operators in this segment standing at more than 60. It is expected rise with number Internet users in the country. The platform claims to have more than two crores users on its platform.

The company has partnered with the Hero Caribbean Premier League T20 tournament, the NBA, and Indian Super League.

Meanwhile, if the deal goes through, it would be Tencent second investment in Indian firms this year, after the Shenzhen-headquartered company led $115-million investment in music streaming service Gaana, owned by Times Internet in February.

Last year, in India Tencent invested in online marketplace Flipkart and followed that up with a stake purchase in ride-hailing firm Ola. Tencent also owns stakes in messaging application Hike, healthcare startup Practo and education technology firm Byju’s. So far, it has invested $1.3 billion in India.

Tencent, has been stepping up investments in India as it takes on arc rival Alibaba, which too, has been bullish about investing in India. Both Chinese juggernauts are eying for deeper impact as well as penetration in India.

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here