Dream11 pivots to sports entertainment, targets watch party experiences
Dream11, which was subject to a real money gaming ban, changed its strategy to become a sports entertainment platform. The company, which has over 250 million registered users on its platform, expects to capture a significant portion of the “watch party” experience, or people watching streaming content, which is likely to boom in India’s sports segment, its founders told the media at an event.
“We think there is huge potential to create a ‘Twitch’ type of global platform in the sports segment in India,” said Harsh Jain, co-founder and chief executive officer (CEO) of Dream11 and Dream Sports. In 2014, Twitch, a streaming platform, was acquired by Amazon for $970 million in an all-cash deal.
The total addressable market (TAM), a metric that startups use to understand a segment’s growth potential, is estimated at $10 billion in revenue, according to Jain. He said there are more than a billion sports fans globally who can be targeted. Calling it a proven playbook, Jain said the company is spreading its bets and trying to bring something that adds value to the ecosystem.
The app will allow users over the age of 18 to watch and interact with their favorite influencers during a live match. Although the use of the platform is free for everyone, Dream11 plans to monetize the experience through embedded ads, paid notifications, interaction with influencers and an ad-free version, Jain said. According to him, the platform was created with the aim of creating richer and more immersive sports experiences to complement live sports broadcasts.
It will initially target smaller sums; ₹3-10 per user per shout or interaction. Jain explained that the bulk of this revenue will be allocated to influencers, while the company will keep a small platform fee.
The 2025 ban on real money online gaming had a severe impact on Dream11’s business, causing an almost 95% loss of revenue overnight and forcing the company to shut down its paid competitions. In response, Dream11 said it would focus on a free-to-play, ad-supported model.
The company has also ventured into the fintech business. Dream Money will offer an asset management service for new generation investors. Mint The company announced its intention to enter the brokerage business on October 28.
The company’s last value, supported by important investors such as Tencent, Steadview Capital, Tiger Global, TPG, ChrysCapital, TCV and Alpha Wave Global, was $8 billion. The company produced around ₹6,384 crore revenue and ₹188 crore profits as of March 31, 2023, with a significant decline in revenues following the ban.
“We have reallocated our employee base of 1,000 to some of the emerging businesses within the group. Dream Sports will have 200 people, the remaining 800 will be allocated to other businesses,” Jain added. The parent company has businesses like Dream Sports AI, Dream Set Go, Dream Cricket, Dream Money and Dream Sports Foundation, among others.
“A business is based on retention, not just adoption. Retaining both users and employees is equally important,” Jain said. The company stated that it allowed employees to leave without penalty for violating their contracts and assured that there would be no layoffs in its engineering team. “We will reduce costs in operating expenses, such as shifting to a cheaper office, but we do not plan to reduce the engineering team,” Jain added.
Dream Sports, founded by Jain and Bhavit Seth, is not looking to raise any follow-on capital and will fund this pivot from internal accruals. Jain said other businesses under the group will also have their own independent growth trajectories and will explore raising funds when necessary. “We want each business to run independently and so if there is a need to externalize them and raise capital, that will be done,” he added.
