Asian online giant mulls Indian fantasy sports investment

News on 19 Apr 2018

Chinese internet giant Tencent is mulling the $100 million acquisition or investment in Mumbai-based daily fantasy sports platform Dream11, according to a report in the Economic Times, which claims that negotiations are at an advanced stage.

Tencent’s investment in Dream 11 was possibly encouraged by the Punjab and Haryana High Court’s recent ruling that fantasy sports are games of skill and not of chance (see previous report).

If the two companies reach an agreement Dream11’s pre-money valuation will climb soar around $400 to $450 million, analysts estimate. So far Dream11 has declined comment.

The Times records that Dream 11 was founded by Harsh Jain and Bhavit Sheth in 2012 as a Series B-funded start-up that offering fantasy cricket, fantasy football and the fantasy kabaddi game of skill.

The company can now boast over 4 million players across India and the United States. Current major investors include Kalaari Capital, Multiples Alternate Asset Management and San Francisco-based investment firm Think Investments.

Tencent appears interested in India – earlier this year it invested around $115 million in music streaming service Gaana.

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