Dream 11 became the latest entrant in the India growing club of unicorns or start-ups valued at over $1 billion. With this it also became India first gaming corporation to join the elite club of unicorns.
Unicorn refers to any tech start-up company that reaches a $1 billion market value.
Dream 11, a fantasy league for cricket, kabaddi, football, among other sports, allowing users to create virtual teams, and help them to organize matches based on statistical performance of players in the actual game.
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The estimation of Dream 11 Fantasy Pvt. Ltd., climbed to just under $1.5 billion after a minor stake purchase by Hong Kong-based Steadview Capital, according to a person aware of the development. This comes post seven months when the Mumbai-based start-up raised $100 million from China Tencent Holdings Ltd. at an evaluation of $700 million.
As per the company, three of the startup early sponsor—Kalaari Capital, private equity firm Multiples Alternate Asset Management and hedge fund Think Investments, sold a portion of their stakes in the Dream 11.
Acknowledging the stake holders, Harsh Jain, CEO of Dream 11 said, “The Company has joined the unicorn club. Dream 11 rise overcame many difficulties, particularly legal challenges, due to fantasy gaming likeness to gambling, which is largely illegal in India.”
Its legality was confronted in the Punjab and Haryana High Court. The court, however, ruled that fantasy gaming involves skill rather than chance.