Gaming Report: Dream11 Eyeing to Become India`s 1st Gaming Unicorn, Delta Corp Invests ₹15.50 Crores in Fantasy Sports Platform HalaPlay & More

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  • Namita Ghosh March 5, 2019
  • 4 Minutes Read

Big waves of development have hit the Indian fantasy gaming segment. Leading fantasy sports portal Dream11 is about to get a whopping investment to the tune of $100 Million (₹710 Crores) from London-based alternative asset manager, Steadview Capital. Negotiations for Steadview to make a secondary transaction in Dream11 are reportedly underway, and if the deal goes through, it could make Dream11 India`s first gaming unicorn.

According to a report published on Glaws.in, India’s only BSE-listed casino and gaming company Delta Corp has announcement an investment of ₹15.50 Crores in fantasy gaming portal HalaPlay. Delta has, at the same time, divested its in-house fantasy platform ‘LeagueAdda’ to HalaPlay Technologies Pvt. Ltd., the parent company of HalaPlay.

Meanwhile, 888 Holdings has stepped up its presence in the sports betting industry by acquiring BetBright’s sports betting technology platform.

Dream11 in Talks to Get $100 Million (710 Crores) From Steadview Capital

Dream11 is arguably India’s leading online fantasy sports portal. According to a VCCircle report, Steadview Capital – an international alternative assets management company is likely to make a secondary transaction worth $100 Million (₹710 Crores) in the Indian firm.

Dream11

Steadview is looking to get a stake in Dream11 for the mentioned amount in a secondary transaction, with the existing shareholders of the company. The reported post-money valuation for this transaction is being estimated at $1.3 Billion to $1.5 Billion (₹70,75,55,00,000). If the deal goes through, it will effectively make Dream11 India’s first gaming unicorn. Dream11 will also surpass in valuation, India’s only BSE-listed gaming company Delta Corp that currently has a market cap of ₹6,746 Crores.

“We have no interest in raising any more money in the near future. There’s no primary fundraising that’s going on at all. Secondary transactions, on the other hand, can happen throughout,” co-founder and CEO Harsh Jain of the Mumbai-based portal said.

Currently, Kalaari Capital, Think Investments and Multiple Equity are the chief investors of Dream11. In 2018, Chinese giant Tencent Holdings also led a Series D investment of $100 Million in Dream11.

We want to focus on actually utilising the money that we raised in September in our Series D round,” Jain said, “We have not even started utilising that money and we will use all that money for the upcoming IPL (Indian Premier League) and Cricket World Cup,” he added.

Set up in 2007 by Jain and Bhavit Sheth, Dream11 has rapidly grown to become the biggest name in the Indian fantasy sports market. The company recently announced that its total registered users have crossed the ₹5 Crore mark. Dream11 is also the official fantasy game partner for the International Council of Cricket (ICC), Pro Kabaddi League, National Basketball Association, Big Bash League, Indian Super League and the International Hockey Federation.

Steadview makes long-term investments in multiple industrial sectors and has a wide investor pool that includes foundations, sovereign wealth funds, family offices, endowments and pension funds. The company has been steadily increasing its investment in India. Already an investor in ANI Technologies Pvt Ltd., Steadview released fresh investment for the company that operates cab-service, Ola. It has also led a Series D investment of $50 Million (₹3,53,77,75,000) in home services marketplace UrbanClap, and invested $30 Million (₹2,12,26,65,000) in fintech startup, INDwealth, led by Ibibo Group founder Ashish Kashyap.

Delta Corp Invests 15.50 Crores in HalaPlay, Divests LeagueAdda

The lone BSE-listed gaming and hospitality firm of India, Delta Corp has made several major announcements recently. Divesting its in-house fantasy sports venture LeagueAdda, Delta has invested close to ₹15.50 Crores in fantasy gaming portal HalaPlay.

Delta Corp

According to a regulatory filing by Delta Corp to the stock exchanges, the deal has been inked between Delta Corp and parent company of HalaPlay, HalaPlay Technologies Pvt. Ltd. Delta will be investing the money in two tranches and receive 31,994 equity shares in HalaPlay. It also stated that it will aim to complete the transaction by May 1.

Alongside, Delta’s wholly owned subsidiary, Gaussian Network Pvt Ltd has entered a business transfer agreement with HalaPlay to transfer Delta’s fantasy sports division, LeagueAdda to HalaPlay. For this, Gaussian will be allotted 4.03% shareholding i.e. 10,320 equity shares in HalaPlay. This will take the combined share of Delta Corp and Gaussian Netwoeks in HalaPlay to 19.55%.

HalaPlay, a Mumbai-based fantasy sports startup was founded in January 2017 by Swapnil Saurav, Prateek Anand, Ananya Singhai and Aman Kesari. It is an online, mobile-centric fantasy sports platform where players can play, and win cash prizes. Games offered on HalaPlay include cricket, kabaddi and football. Offering cash games based on different formats, HalaPlay uses machine learning and data analytics to help users form teams, analyse playing behaviour and improve fantasy skills.

This is reported to the second big investment made in the company. In November 2017, HalaPlay had raised an undisclosed amount from early-stage investment firm Kae Capital Management Pvt. Ltd and Nazara Technologies Pvt. Ltd.

888 Acquires Dublin-based BetBright’s Sports Betting Technology Platform

UK-listed 888 Holdings has increased its foray into long-term sports betting prospects by acquiring BetBright’s sports betting technology platform. Early this week, 888 informed investors that it has finalised a £15M deal with BetBright’s parent firms Dedsert Ltd and Dedsert (Ireland) Ltd for taking over the operator’s sports betting platform.

888 Holdings

Calling BetBright’s platform “the missing piece in our proprietary product and technology portfolio,” 888 CEO Itai Pazner praised BetBright’s “fantastic” workforce and predicted they would “significantly strengthen 888’s sports betting expertise and industry know-how.”

As a first step, 888 will also begin the process for integration of technologies of the two companies, and follow that up with a “phased and market-by-market roll out.” As part of the deal, 888 will take ownership of BetBright’s office in Dublin. The company’s product and trading staff is being retained, and integrated in the 888 group.

Notably, tech providers Kambi has been supplying the betting platform for 888sport since May 2013. Kambi also recently launched 888’s licensed sports betting service for 888 in New Jersey.

While bringing BetBright in its fold gives 888 an in-house sports betting product, it will pave the way to eliminate royalty payments to Kambi.

The company though, is likely to bear a big dent in its finances due to technology integration, for the short term. On Monday, 888’s shares fell by 2% as trading closed.

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