According to a media report, Naspers is in talks with fantasy gaming startup Dream11 to buy a stake and may invest up to ₹700 crores for a valuation of ₹17,500 crores ($2.5 billion) which will double the valuation of Dream11 from its previous valuation of ₹7,000 crores ($1 billion). The South African investor will buy stakes from Dream11’s existing investors including Kalaari Capital, Think Investments and Multiples Alternate Asset Management, the report said.
The 11-years-old Mumbai-based startup raised an undisclosed amount of funding from Steadview Capital in April and entered the unicorn club. The deal at that time also involved a secondary sale of shares by Kalaari Capital, Think Investments and Multiples Equity.
Founded by Bhavit Shah and Harsh Jain, Dream11 operates a fantasy sports platform for cricket, football, kabaddi, and National Basketball Association (NBA) matches. The platform serves more than 5 crore players who pay an entry fee to participate in the paid contests. The company earns its profit by charging a platform fee from the total pool collected after the contest ends.
The startup grew at a CAGR of 230% in the last three years. However, it took the startup three years to hit its first million users mark. After that, it crossed 3 million users in less than two months in 2016.
South Africa-based Naspers has recently invested ₹875 crores in Facebook-backed social commerce startup Meesho. Prior to that, the investor was also in talks with digital lending firm Capital Float to invest ₹1,400 crores.
Dream11 competes with startups like HalaPlay, Mobile Premier League, CricPlay, 11Wickets, StartPick, and Fantain. However, Dream11 holds the largest market share in the segment. The venture capital firms invested more than ₹2,359 crores in Indian gaming startups between 2014 and 2018.