Rapidly Growing Indian Gaming Industry Seeks New Financial Horizons

The online gaming sector in India is growing rapidly in user base, overall revenues and total valuation. Tech investors, mostly foreign, have supported this positive trend. Dream11’s parent company, the country’s first sport tech unicorn, is weighing the possibility of a public US market listing early next year.

Leading Online Fantasy Sports Platform Considers Going Public

Dream11 has become famous across the country as the title sponsor of the 2020 Indian Premier League (IPL). The high profile partnership with the top cricket tournament simply exposed the growing popularity of fantasy sports in India.

According to Centre’s policy think tank Niti Aayog, the online fantasy gaming sector in India has grown at a CAGR of 212 per cent between 2016 and 2019. From a mere 2 million users a few years ago, it has gained a cornerstone importance in today’s tech sector.

Dream11’s parent company Dream Sports is now considering going public in the US early next year. The tech giant has already received presentations from several major investment banks, although an IPO mandate or a potential fundraising volume and timeline have not been set yet.

Finance experts indicate that Dream Sports may choose the SPAC way of avoiding excessive US market regulations. A special purpose acquisition company (SPAC) is also called a “blank cheque company”. Formed with the sole purpose of raising capital in an initial public offering, it is channelled afterwards towards the acquisition of an existing company.

Dream Sports co-founder Harsh Jain is a member of the board of a SPAC launched by Ravi Adusumalli and Shashin Shah called Think Elevation Capital Growth Opportunities. Said SPAC is focused exclusively on desi tech companies that are interested in going public in the US.

Dream Sports’ move will come after a series of recent successful funding rounds. In September 2020, the sport tech unicorn attracted $225 million from investors to a total valuation to $2.5 billion. Then, in March 2021, Dream Sports raised another $400 million from new and existing investors, and the company was valued at $3.6 billion. A successful US listing is expected to bring further $1.5 billion, bringing Dream Sports’ value to around $6 billion.

Offshore Indian Platforms Join the Positive Trend

Offshore Indian platforms are an excellent example of a new age in online communication and social bonding. Whether playing poker or rummy with friends, or enjoying andar bahar with the family, online casino sites like PureWin for Indians have proven their worth as a media outlet, providing the casual entertainment that millions seek in a post-Covid reality.

Indian Gaming Sector on the Rise

Bharat’s gaming industry has been growing steadily for a number of years. Reportedly, it has already reached the number one spot globally and was estimated at around $ 1 billion back in 2020. Desi internet users are over 56 crore, making India the world’s second largest internet consumer market. Gaming users alone exceed 36.5 crore.

Mobile gamers are the largest group in that segment, taking up a massive 85 per cent of the industry. The availability of affordable smartphones, high-speed 4G internet and some of the world’s cheapest data rates have all played their part.According to KPMG’s media and entertainment report, the Indian gaming sector revenues grew at an impressive 45 per cent throughout FY 2020. The World Economic Forum confirms the growth outlook for up to a decade, citing a quadruple rise in total valuation by 2024.

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