Indian Premier League title sponsor Dream11 is eyeing the next round of funding that will see the fantasy sports platforms valuation reach $2.5 billion – over 125% increase in the $1.1 billion valuations in April last year.
The funding will also see Chinese Tencent Holdings stake in the company going down from reported 10.9% to a single digit.
Questions were raised about Dram11’s Chinese funding when the company replaced Vivo as the title sponsor for the IPL 2020. The Board of Control for Cricket in India and the Chinse mobile handset manufacturer were compelled to pause the IPL title sponsorship deal at least for one year due to a rising anti-China sentiment in the country following the standoff and heightened tension at the LAC in the Galwan Valley.
Dream11 on Monday last had acquired the IPL 2020 title sponsorship rights for ₹ 222 crores. The fantasy gaming platform had also made an offer for the next two seasons as ₹ 240 crores per annum, but the BCCI turned that down.
Dream 11 is in advanced talks with at least four private equity firms to close a $235 million deal, national daily Indian Express has reported quoting sources familiar with the development.
The deal is likely to be announced soon, sources said.
This deal reportedly consists of a $35 million primary fundraising and a $200 million secondary sale of shares, which could see Chinese firm Tencent Holdings Ltd’s shareholding come down to single digits, said sources.
Private equity firms including TPG Capital, Tiger Global Management and Footpath Ventures are reportedly evaluating to buy a stake in Dream11.