Fantasy sports market leader Dream11 (Dream11 Fantasy Pvt. Ltd.) has secured fresh funding of US$100 million (around Rs. 719 crores) from Chinese social media and gaming giant Tencent Holdings, as per a recent report in VCCircle.
The report in VCCircle quotes an unnamed executive of Dream11 confirming that the transaction with Tencent Holdings has been completed. Further details about the valuation, exact contours of the transaction and whether any existing investors (which includes venture capitalist firms Kalaari Capital and Multiples Equity) would be exiting or partially selling their stake in the company has not been disclosed.
Dream11 had been in advanced stages of discussion with Tencent about raising funds from the Chinese behemoth since April 2018. Further, media reports at the time had also indicated that Tencent may invest close to US$100 million in Dream11 at a pre-money valuation of around $400-500 million.
It has also been reported that Tencent has been planning to invest close to US$200 million in gaming ventures in India. The Chinese firm has also in the past, held talks with two social gaming companies- Octro and MoonFrog Labs for potential acquisition or investment opportunities.
The investment deal by Tencent is the biggest transaction in the India gaming industry and makes Dream11 the most expensive and highly valued online gaming company in the country. With this deal, Dream11 will get access to unprecedented funds, which presumably will be used to bolster marketing activities and achieve the company’s target of getting 100 million (10 crore) registered users on its platform.