Dream11 Set for Valuation of US$2.5 Billion After Next Funding Round

Repor🌊ts in business media say that Dream11 is in advanced talks with at least four private equity firms and are closing in on a new US$235 million funding deal.

The deal includes a US$35 million primary fund raising and a US$200 million secondary sale of shares. This could see Chinese giant Tencent shareholdings come down to single digits. Tencent owns around 10.9% of 𝄹Dream11's holding company, Sport Technologies Pvt Ltd.

Amid simmering tensions between China and India - which has included a ban on some Chinese apps in India - Chinese firms are backing out of the market. The early exit of smartphone maker Vivo from sponsorship of the Indian Premier League (IPL) amid an anti-Chinese backlash at the death of soldiers on the Himalayan border allowed Dream11 to become the new title sponsor of 🔯the IPL this week.

The private equity firms believed to be interested in buying a ꦏstake in Dream11 in🌺clude TPG Capital, Tiger Global Management and Footpath Ventures among others, according to sources quoted in .

The deal would see Dream11's valuation more than double to US$2.5 billion from the $US1.1 billion in April 2019. Back then it was the US hedge fund 🐽Steadview that brought stakes from early Dream11 investors.

Despite the hefty valuation, Dream11's last financial results from 2019 saw the company's losses widen t🎐o RS. 131 Crores from Rs. 65 Crores in 2018. Revenue was strong, though, up to Rs. 775 Crores from Rs. 224 Crores.